Document:

License Agreement

 EXHIBIT 10.4 
 “*************” DENOTES MATERIAL THAT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 LICENSE AGREEMENT D09001 
 This license agreement (this “Agreement”), which is effective upon signature by all parties hereto, is by and between
Marvel Characters B.V., with an office at 1600 Rosecrans Avenue, Manhattan Beach, CA 90266 (“Marvel”) and, solely with respect to characters based on movies and television shows featuring Spider-Man and produced by Sony Pictures
Entertainment Inc. (“Spider-Man Movie Characters”), Spider-Man Merchandising L.P. with an office at 417 Fifth Avenue, Mezzanine, New York, NY 10016 (the “LP” and, together with Marvel, “Licensor”),
on the one hand, and the party identified below (“Licensee”) on the other. 
 Reference is made to License Agreement D05184 (as
amended to date, “License Agreement D05184”), the Service Agreement executed on or about January 1, 2006 between Licensee and Marvel Entertainment, Inc. (as amended to date, the “2006 Service Agreement”), the
Fourth Amendment to License Agreement of even date herewith (the “Fourth Amendment to License Agreement D05184”), the Third Amendment by Licensee and Marvel Entertainment, Inc. to the 2006 Service Agreement of even date herewith
(the “Third Amendment to 2006 Service Agreement”), and the Service Agreement between Licensee and Marvel of even date herewith (the “New Service Agreement”). 
  

	1.	BASIC INFORMATION AND TERMS 

  

					
	 (a) Licensee:
	  		  	
			
	 Hasbro, Inc.
 1027 Newport Avenue
 Pawtucket, Rhode Island 02862
	  	 Attention: Brian Goldner
 Tel: 401-727-5202
 Fax:
 Email: bgoldner@hasbro.com
 With a copy to: Barry Nagler, Esq.
 Tel: 401-727-5008
 Fax: 401-727-5121
 Email: bnagler@hasbro.com
  
	  	 Numbered
 Section

	 (b) Characters:
	  	 All Marvel Classic Characters. “Classic” Characters refers to the embodiment of the Marvel characters as originally
conceived in the comic books and widely known to the popular imagination through successive classic (i.e., faithful in appearance and characterization to the original comic books) interpretations in comic books, films, TV animation, video games and
other media. The Classic designation includes all of Marvel’s current classic (non-media) style guides (and future versions thereof) including, for example, Classic Spider-Man, Classic X-Men and Classic Hulk as well as Marvel Retro, Marvel
Heroes and Marvel Extreme style guides, but specifically as well as all Marvel/LP Entertainment Properties (i.e., media style guides based on films, live-action TV and/or animation).
  
 All Marvel Movie Characters, to the extent the applicable merchandising
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		  	 rights are owned and/or controlled by Marvel and/or the LP, subject to any applicable third-party restrictions (for example,
restrictions on likeness rights due to cast talent agreements vis-à-vis specific Marvel live-action movies). All rights to use Marvel Movie Characters as they appear in motion pictures, television productions or productions in other media are
subject to agreements between Marvel or the LP and third parties (including, but not limited to, talent and studios) relating to such productions; however, Marvel and the LP shall use commercially reasonable efforts to obtain from such third parties
all rights necessary for Licensee to fully exploit the rights granted hereunder at no further expense to Licensee. If Licensee wishes to use any Marvel Movie Characters other than those characters in Marvel’s style guide and other than in the
form contained in the style guide, then Licensee shall do so only with Marvel’s prior written approval, and Licensee shall be responsible for any required third-party clearances.
  
 All Marvel Animated and Live-Action Television Characters, to the extent the applicable
merchandising rights are owned and/or controlled by Marvel and/or the LP, and subject to any applicable third-party restrictions (as above). All rights to use Marvel Animated and Live Action Television Characters as they appear in animation or
television productions are subject to agreements between Marvel or the LP and third parties (including, but not limited to, talent and studios) relating to such productions; however, Marvel and the LP shall use commercially reasonable efforts to
obtain from such third parties all rights necessary for Licensee to fully exploit the rights granted hereunder at no further expense to Licensee. If Licensee wishes to use any Marvel Animated and Live Action Television Characters other than those
characters in Marvel’s style guide and other than in the form contained in the style guide, then Licensee shall do so only with Marvel’s prior written approval, and Licensee shall be responsible for any required third-party clearances.

  
 Note #1: Marvel Movie Characters and Marvel Animated and Live Action
Television Characters are collectively “Marvel/LP Entertainment Properties”.
  
 Note #2: Properties which are not incorporated into and are primarily kept separate and apart from the Marvel Universe are excluded from this Agreement. The “Marvel Universe” shall
mean:
  
 (i)     all characters whose visual image and description are contained in the Official Handbook of the Marvel Universe as it may be expanded from time to time, in any successor reference work, or in any other
reference material identified by Marvel;
  
 (ii)    all characters whose visual image and description are intended by Marvel to be included in future editions of the handbook or successor work described in clause (i) of this sentence;
  
 (iii)  all characters whose first
appearance was in a media production based primarily on any of the characters described in clause (i) of 
  
	  	

  

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		  	          this sentence; and
  
 (iv)   characters developed by
Marvel which, in one or more of their manifestations, interact with the Marvel Universe (other than in a wholly insignificant manner, such as an isolated cameo appearance), whether or not such characters are included in the Official
Handbook.
  
	  	
	 (c) Licensed Categories:
	  	 1.      Action Figures: All toy “action
figures” in all sizes in all plastic (e.g. pvc/abs) or other similar synthetic materials or combination of materials (but excluding plush and porcelain), with or without batteries or other electronics, including figures capable of being
assembled, as this category is generally understood within the boy’s action segment of the toy industry on the date hereof together with all related accessories (weapons, vehicles, playsets, etc.) conceived, designed, marketed and sold for
interaction with such action figures (for example, Spider-Man action figures with Spider-Man motor-cycle designed and built to scale).
  
 Note #1: For the avoidance of doubt, collectible statues, busts, dioramas, sculpts, plastic models and model kits, Kubricks, Mini-Mates and Bobbleheads, and
Tomy Capsule Collectibles are not included in the Licensed Categories.
  
 Note #2: For the avoidance of doubt, the following items are not “Action Figures” for the purposes hereof, and Licensee accepts and understands that Licensor has on-going licenses in each of these business segments, which shall
continue throughout the Term:
  
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 2. Flying Action Figures: defined as any figure (articulated or non-
  
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		  	      articulated) that can be, by hand or by air pump, projected, launched, fired, or propelled through the air
or whose primary play pattern is to take place in mid-air. The Flying Action Figures shall not be motorized nor electronically powered nor shall they be tethered, remote, radio and/or infra-red controlled. Notwithstanding the foregoing, Licensee may
use limited radio control or infra red technology to allow for the in-air separation of the Action Figure and its attachments (planes).
  
 3.      Articulated Figural Backpack Clips/Backpack Danglers:
Notwithstanding the foregoing, non-articulated figural backpack clips permanently attached to a backpack (not sold separately) and sold to the “back to school” buyer are specifically excluded from this Licensed Category.
  
 4.      Licensee’s Proprietary “Attacktix” Branded Figure Tactics Game: defined as the existing Hasbro figure-based strategy and tactics tabletop game of this name, as well as
substantially similar variations and extensions thereof.
  
 5.      Non-Costume/Non-Dress Up Action and Role-Play Weapons and Accessories: r re-produce key accessories of Marvel Super Heroes. This Licensed Category does
not include prop replicas.
  
 Note #3: By way of example, this
Licensed Category would include Spider-Man Web Blasters, other blasters and weapons, and role play laser tag, Hulk Hands, helmets, masks, and Wolverine Claws. Other examples could include, for instance, a Thor hammer or Captain America shield
(re-produce key accessories).
  
 Note #4: All Non-Costume/Non-Dress
Up Action and Role-Play Articles must be composed of not less than fifty percent (50%) plastic.
  
 Note #5: For the avoidance of doubt, this Licensed Category does not cover all weapons (e.g. non-role plays laser tag), non-action Role Play, Video Game Accessories, Peripherals, and Controllers;
provided that Licensor shall consider in good faith Licensee’s request to produce role play products which have a secondary feature which would allow a video game accessory or controller to be incorporated into such product.
  
 6.      Feature Plush (Figural or Non-Figural): in all styles/types, sizes and materials. Feature Plush is defined as Plush with animatronics, electronic or mechanical interactive features or
attributes (i.e. lights, sounds and/or movement). Notwithstanding the foregoing, basic plush with simple features that do not incorporate any form of electronics, battery power or motion of any kind are specifically excluded from this Licensed
Category #6 and are included in Licensed Category #7 below.
  
 7.      Basic Plush (Figural or Non-Figural) (NON-EXCLUSIVE): in all
	  	

  

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		  	      styles/types, sizes, materials, and may include simple features that do not incorporate any form of
electronics, battery power or motion of any kind.
  
 8.      Figural Wall-Crawling Radio or Infrared Control: in all styles/types, sizes and materials.
  
 9.      Co-Branded Transformers Brand Action Figures: defined as a co-branded program limited to Licensed Article #1 (Action Figures) combining the Characters and the images, copyrights, and marks
of Hasbro’s Transformers brand.
  
 10.    ***********************************and accessories. Licensee shall not utilize the Marvel brand to ****************************************************
  
 11.    Licensee’s Proprietary Foam Based “Nerf” Branded Sporting Goods and Blasters that shoot foam darts and balls: all styles/types. The category of foam based sporting goods shall be
non-exclusive and the category of blasters that shoot foam darts and balls shall be exclusive.
  
 12.    Water Guns, Water Blasters and Water Cannons.
  
 13.    Board
Games: children’s, family and all-age board games in Licensee’s proprietary brands (for example, “Monopoly”, “Life”, “Risk”, “Candy Land”, “Operation”, “Trivial Pursuit”,
“Clue”, “Scrabble”, “Heroscape”), in themed editions, as well as non-proprietary-branded children’s, family and all-age board games. Notwithstanding the exclusive nature of this Licensed Category, Licensee agrees
to consider in good faith on a case-by-case basis Licensor’s requests to license out non-competitive age and/or gender specific executions.
  
 14.    Electronic Hand Held Electronic Games: self-contained dedicated electronic
handheld devices with their corresponding software hard-coded into such device (which shall be similar to Tiger Electronic dedicated electronic handheld devices). Such device shall not accept cartridges or any additional software and/or shall
not connect to a computer, television, pc or any other interactive device nor include any educational, teaching, or learning elements. Notwithstanding the exclusive nature of this Licensed Category, Licensee agrees to consider in good faith on a
case-by-case basis Licensor’s requests to license out non-competitive age and/or gender specific executions.
  
 15.    Puzzles: two-dimensional (2D) cardboard and foam puzzles in all shapes,
piece counts and sizes and cardboard and foam three-dimensional (3D) puzzles (i.e. Wrebbit, Puzz3D). Notwithstanding the exclusive nature of this Licensed Category, Licensee agrees to consider in good faith on a case-by-case basis Licensor’s
requests to license out to third parties non-competitive age and/or gender specific executions.
	  	

  

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 16.    Licensee’s Proprietary “Puzzle Shots”: defined as the application of a digital photograph on to a digital puzzle and/or poster. The picture puzzle and/or poster shall be distributed
through on-site portrait studio (kiosk) where a consumer’s digital photograph is taken and super-imposed on a Character background to create a personalized foam fit puzzle. Licensor agrees to consider in good faith Licensee’s request to
exploit Puzzle Shots through on-line executions.
  
 17.    Licensee’s Proprietary “Playskool” Branded Pre-School Toys: This category shall include Licensee’s range of products of the general type
developed by Licensee under License Agreement D06053. Actual styles/types of products shall be developed in consultation with Licensor with Licensor retaining final approval over the styles and types of products to be developed, such approval not to
be unreasonably withheld. The category of pre-school toys shall be non-exclusive.
  
 18.    All Compounds: including, but not limited to Play-Doh.
  
 19.    Electronic
IPOD/MP3 Speakers: limited to a dog or figure which interacts with an Ipod or MP3 player and displays motion, sound and light in reaction and relation to music in the manner consistent with Licensee’s I-DOG line of products.
Additional styles/types (e.g. fish, and cats) to be approved on a case-by-case basis in Licensor’s sole written discretion, which approval shall not be unreasonably withheld.
  
 20.    Musical
Toothbrushes: defined as a toothbrush that plays music.
  
 21.    Wall Decals: permanent and removable wall decals. Specifically to exclude wall paper and wall paper borders. Notwithstanding the exclusive nature of this Licensed
Category, Licensor shall have the right to sell Wall Decals limited to the home décor buyer of retail customers and further the Wall Decals sold by Licensor may not be sold in the toy or poster section of any retailer, and Licensee agrees to
consider in good faith on a case-by-case basis Licensor’s requests to license out non-competitive executions.
  
 22.    Licensee’s Proprietary “Lite Brite” Branded Activity
Products: limited to the following styles types:
  
 a.      “Lite Brite” Activity Set: defined as an activity set whereby the consumer uses child friendly pegs which are pushed through perforated paper/panel
and paper to create designs.
  
 b.      Spinning Paint Activity Sets: defined as a spinning mechanism with paint and sheets of paper or other material to create designs on the sheets of paper. The Spinning Paint Activity Sets may also
include lights and sounds.
  
 23.    Licensee’s Proprietary “Titanium” Branded Die-Cast Figures and Vehicles): the existing Hasbro die-cast toy line of this name, as well as substantially similar variations and extensions
thereof which maintain the existing distinctive chrome/metallic finish (painted or non-painted). The 
	  	

  

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		  	 category of die-cast shall be non-exclusive.
  
 Note #6: QSR premiums - Licensee acknowledges and understands that Licensor generally does not control promotional rights to Marvel/LP Entertainment
Properties and therefore to third-party promotional/tie-in activities and the associated premiums which may accompany or be a part of such promotional activities. With respect to quick-service-restaurant (“QSR”) promotions, Licensor shall
use commercially reasonable and good-faith efforts to consult with Licensee on the premiums considered for use in Marvel/LP Entertainment Properties QSR promotions and attempt to influence the choice of such premiums to non-action-figure-type
executions.
	  	

  

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	 (d) Territory/
 Channels of Distribution:
	  	 (i)     Territory: Worldwide, excluding Japan
  
 Note #1: Notwithstanding the foregoing, Licensed Article #9 (Co-Branded
Transformers Brand Action Figures) may be sold in Japan and Licensee may distribute any Licensed Article in Japan through an authorized licensee or distributor approved by or designated by Licensor.
  
 (ii)    Channels of
Distribution: All Channels of Distribution.
  
 1.      Internet: may only be sold or shipped within the territory specified in Section 1(d) (i)
 2.      Home Shopping: Subject to Section 13(a)
 3.      Direct Sales method, including Internet direct sales: may only be sold or
shipped within the Territory specified in Section 1(d)(i)
  
 Note #2:
Licensed Articles in Licensed Category #6 (Feature Plush) and #7 (Basic Plush) are excluded from the following Channels of Distribution:
 - Amusement.
 - Redemption.
 - Crane.
 - Charity/Fundraising, unless approved by Licensor, which approval shall not be unreasonably withheld.
  
 Note #3: Notwithstanding anything to the contrary, and despite the restrictions in Section 1(f) and 3(a), Licensor may itself utilize or grant to any
other party the right to sell, distribute or otherwise exploit the Property in connection with Licensed Category #6 (Feature Plush) in the following Channels of Distribution:
 - Gift (e.g., Spencer Gift, Hallmark Gold Crown Stores and Hot Topic etc.)
 - Specialty (e.g., FAO
Schwartz and Build a Bear, etc.);
 - Upstairs Department Stores (e.g., Macys, Nordstrom’s and Bloomingdales, etc.).
  
	  	3(b)
	 (e) Term:
  
 Commencement Date:
	  	  
 a)      If the fourth Spider-Man film is released by December 31, 2011, then the Commencement Date for this Agreement shall be January 1, 2012 for all Characters other than the fourth Spider-Man film (if
released in 2011) and any other Qualifying Theatrical Releases or Domestic Qualifying Broadcasts which are released during 2011 (each, a “2011 Release” and collectively, the “2011 Releases”). Each 2011 Release shall remain apart
and separate from this Agreement until the day which is twelve (12) months after the United States release date of such 2011 Release (for each 2011 Release, the “2011 Release Term”). For the avoidance of doubt, until expiration of the 2011
Release Term (on a film by film or animated television show by animated television show basis), all terms of Licensee Agreement D05184 shall apply to each 2011 Release
	  	  
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          , and shall not cross-collateralize or credit any such royalties against the Minimum Royalty Guarantee for this Agreement D09001. Upon expiration of the 2011 Release Term for each 2011
Release, the terms of this Agreement D09001 ************************* shall apply to all subsequent sales of tie-in Licensed Articles for each 2011 Release.
  
 b)      If the fourth Spider-Man film is not released by December 31, 2011, then the
Commencement Date for this Agreement shall be January 1, 2013 for all Characters other than the fourth Spider-Man film (if released in 2012) and any other Qualifying Theatrical Releases or Domestic Qualifying Broadcasts which are released during
2012 (each, a “2012 Release” and collectively, the “2012 Releases”). Each 2012 Release shall remain apart and separate from this Agreement until the day which is twelve (12) months after the United States release date of such
2012 Release (for each 2012 Release, the “2012 Release Term”). For the avoidance of doubt, until expiration of the 2012 Release Term (on a film by film or animated television show by animated television show basis), all the terms of
Licensee Agreement D05184 shall apply to each 2012 Release
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          *, and shall not cross-collateralize or credit any royalties against the Minimum Royalty Guarantee for this Agreement D09001. Upon expiration of the
2012 Release Term for each 2012 Release, the terms of this Agreement D09001 ************************ shall apply to all subsequent sales of tie-in Licensed Articles for each 2012 Release.
  
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	 Expiration Date:
	  	 December 31, 2017 (subject to extension as set forth in Section 3(c) hereof). Notwithstanding anything to the contrary contained
in this Agreement, no manufacture, sale or distribution of articles utilizing the Property in Licensee’s exclusive Licensed Categories by parties other than Licensee prior to the Expiration Date (as it may be extended) shall violate this
Agreement as long as such activity is with respect to retail sales occurring after the Expiration Date (as it may be extended) and, more particularly, is conducted according to the following schedule:
  
 (i)     sales
(wholesale) to be made no earlier than six (6) months before the Expiration Date (as it may be extended);
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		  	          the Expiration Date (as it may be
extended); and
 (iii)  shipment to begin no earlier than two (2) months before the Expiration
Date (as it may be extended);
  
 but where one of the parties informs the
other that variations from the dates in clauses (i) through (iii) of this sentence would be reasonable under the circumstances, the parties shall negotiate in good faith on the subject of whether the requested variation should be made.
  
 If the Commencement Date becomes January 1, 2013 as described in Section 1(e)(b), the
Expiration Date shall become December 31, 2018, subject to extension as set forth in Section 3(c) hereof.
  
	  	
	 (f) Exclusive/Non-Exclusive:
	  	 Except for the exceptions specifically set forth in the Licensed Category descriptions in Section 1(c) and Section 1(d)(ii) and
Section 14, the license granted to Licensee under this Agreement shall be exclusive and so long as Licensee is not in material and uncured default under this Agreement, Licensor shall not, during the Term as it may be extended and in the Territory,
grant to any third party, nor shall it or any of its affiliates utilize, the right to sell, distribute or otherwise exploit the Property (to the extent that the Property continues to be licensed hereunder) in any Licensed Categories in the Channels
of Distribution.
  
	  	3(a)
	 (g) Royalty Rate:
	  	 Note #1: For all sales by Licensee directly to consumers, including any sales through Licensee-owned retail stores (web-based
or traditional), each of the following Royalty Rates shall be reduced by ********** (e.g., ******* becomes ************) and “Net Sales” shall mean the invoiced consumer retail price.
 A. For sales by Licensee (or its Affiliates, as defined in Section 5(a)(i)) to parties other than *****************************, and credited against
advance/guarantee payments made hereunder:
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 B. For sales by Licensee (or its Affiliates) to
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	 (h) Minimum Royalty Guarantee:
	  	 One Hundred Million Dollars (U.S. $100,000,000) plus the amount of any Performance Advances payable in accordance with this Section
1(h). In no event shall the Minimum Royalty Guarantee exceed Two Hundred Forty Million Dollars (U.S. $240,000,000).
  
	  	5(b)
	 Advance:
	  	 Fifty Million Dollars (U.S. $50,000,000) payable within five (5) business days after full execution of this Amendment.
  
	  	
	 Balance:
	  	 Fifty Million Dollars (U.S. $50,000,000) payable on the date that is the last day of the calendar month in which the final 2011
Release Term or 2012 Release Term
  
	  	

  

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		  	 (whichever is applicable) expires, but in no event later than December 31, 2013.
  
 Note #1: All sums payable as Advances and Balances, including all Advances, Performance
Advances and Balance of Minimum Royalty Guarantee are recoupable **************************************** against any royalty payments due hereunder, whether accruing before or after the date of payment, and all are cross collateralized against one
another.
  
 Note #2: “Qualifying Theatrical Release” shall
mean
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 “Qualifying Marvel Release” shall be defined as a Qualifying
Theatrical Release produced by Marvel Studios.
  
 “Initial Run”
shall mean
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 (A) Performance Advances: “Performance Advances” shall mean Mega Property Qualifying Theatrical Release Advances and Qualifying Marvel Release Advances.
  
 (i) Mega Property Qualifying Theatrical Release Advances: Subject to Clause B
below, Licensee shall pay an advance of Thirty Million Dollars (U.S. $30,000,000) within five (5) business days after the United States Release Date of each of up to four (4) Mega Property Qualifying Theatrical Releases which are released during the
Term, and Twenty Million Dollars (U.S. $20,000,000) within five (5) business days after the United States Release Date of a fifth Mega Property Qualifying Theatrical Release if no Qualifying Marvel Release Advances have been paid as of the United
States Release Date for such fifth Mega Property Qualifying Theatrical Release. For purposes of clarity, in no event will the cumulative total of Mega Property Qualifying Theatrical Release Advances and Qualifying Marvel Release Advances exceed One
Hundred Forty Million Dollars (U.S. $140,000,000). “Mega Property Qualifying Theatrical Release” shall be defined as a Qualifying Theatrical Release
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 ********** that is primarily focused upon one of the following
properties:
  
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 As used in this Section 1(h), “primarily focused” shall mean that the film uses the applicable property name in its title and primarily focuses on the property’s
  
	  	

  

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		  	 character.
  
 (ii) Qualifying Marvel Release Advances: Subject to Clause B below, Licensee shall pay an advance of Ten Million Dollars (U.S. $10,000,000) for each
Qualifying Marvel Release within five (5) business days after receipt of notice to Licensee from Licensor that such release ***
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 , provided that in no event shall the cumulative total amounts
paid as Qualifying Marvel Release Advances and Mega Property Qualifying Theatrical Advances exceed One Hundred Forty Million Dollars (U.S. $140,000,000).
  
 (B) Final Potential Guarantee. The “Final Potential Guarantee” shall be defined as One Hundred Million United States Dollars (U.S.
$100,000,000) plus any earned Performance Advances (e.g., the cumulative total amounts paid as Qualifying Marvel Release Advances and Mega Property Qualifying Theatrical Release Advances) up to One Hundred Forty Million Dollars (U.S. $140,000,000)
for a total of up to Two Hundred Forty Million Dollars (U.S. $240,000,000). Under no circumstances shall the Final Potential Guarantee exceed Two Hundred Forty Million Dollars (U.S. $240,000,000). Mega Property Qualifying Theatrical Release Advances
and Qualifying Marvel Release Advances shall be due and payable, as earned, regardless of the amount of royalties previously paid by Licensee,
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 (C) For calculation of the gross box office revenues referenced herein, the parties shall use the box office statistics for the Initial Run only of the applicable film which are published in the entertainment industry trade
magazine/e-zine/newspaper Variety or other such reasonable replacement in the event Variety is no longer in publication.
  
 (D) Except as specifically provided herein, no royalties or fees generated under other agreements may cross-collateralize against this License Agreement
D09001.
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	 (i) Insurance: 
	  	 Combined Single Limit of $3,000,000 per occurrence.
  
	  	10(e)
	 (j) Post-Expiration Disposal Period:
	  	90 Days	  	16(e)

  

	2.	RECITALS 

 (a) Marvel and
the LP represent and warrant, to the best of their knowledge with respect to trademark and servicemark rights (including, but not limited to, trade dress and goodwill pertaining to such marks), and without limitation with respect to all other of the
following items and rights, that they have all rights in and to the names, nicknames, abbreviated names, depictions, likenesses, poses, costumes, emblems, powers, characteristic concepts, themes, settings, pictorial and written graphics and other
characteristic elements and contexts of the Characters identified in Section 1(b) hereof and any copyrights, trademarks, service marks and other intellectual, literary, artistic, design, moral, industrial or commercial property rights and
goodwill in connection with the Characters, incidents, language, artwork, symbols, designs, depictions, likenesses, formats, poses, concepts, themes and graphic, photographic and other visual representations of, relating to and associated with the
Characters identified in Section 1(b) hereof (which names, characters, etc. and/or each of the individual components

  

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thereof shall hereinafter be referred to as the “Property”), said Property being known and recognized by the general public and associated in the public mind with Marvel.

 (b) Licensee desires to utilize the Property in the manner hereinafter described. 
 (c) Marvel is a wholly owned subsidiary of Marvel Entertainment, Inc. (formerly known as Marvel Enterprises, Inc.), a Delaware corporation.

 (d) Marvel is a general partner of the LP. 
 (e) Under a separate service agreement dated as of the date hereof (the “New Service Agreement”), Marvel has agreed to provide Licensee with creative consultation with respect to
the creation, appearance, packaging and marketing of Licensed Articles in exchange for a service fee ******************************************************************** 
  

	3.	GRANT OF LICENSE 

 (a)
Licensed Articles. Upon the terms and conditions and with the limitations and exceptions set forth in this Agreement, Licensor hereby grants to Licensee and Licensee hereby accepts the exclusive (except for the exceptions specifically set
forth in the Licensed Category descriptions in Section 1(c) and Section 1(d)(ii) above and Section 14 below) license and right to utilize the Property but solely upon and in connection with the manufacture, promotion, sale, and
distribution of the categories of articles identified in Section 1(c) (“Licensed Categories”) and in the Channels of Distribution identified in Section 1(d) (ii) (“Channels of Distribution”) during
the Term. Articles in the Licensed Categories that utilize the Property and are manufactured, promoted, sold and/or distributed hereunder are referred to herein as “Licensed Articles”. 
 (b) Territory/Channels of Distribution. The license hereby granted extends only to the Territory identified in Section 1(d)(i)
and within the Channels of Distribution identified in Section 1(d)(ii). Licensee expressly acknowledges and agrees that it is not licensed or authorized to use the Property, directly or indirectly, in any other area or Channel of Distribution,
and that it is not licensed to and will not knowingly sell the Licensed Articles to persons who intend or are likely to resell them in any other area or Channel of Distribution, to the extent this provision is permitted by the applicable law at the
time of such use, license or sale. In the event that Licensee sells or exploits the Licensed Articles outside either the Territory or Channels of Distribution in violation of this Section 3(b), notwithstanding Sections 1(g) and 5(a), the
royalty due Licensor on such sales shall be the Net Sales. 
 (c) Term. The license hereby granted shall commence upon
the Commencement Date and terminate automatically on the Expiration Date (the “Term”) set forth in Section 1(e) or the expiration of any renewal or extension as provided herein, unless sooner terminated in accordance with the
provisions hereof. In the event Licensee commences any activities in connection with the Property prior to the Commencement Date, all provisions of this Agreement for the benefit and protection of Licensor and Licensee shall apply in full to such
activities. Marvel and Licensee shall use commercially reasonable efforts to realize a smooth commercial transition from Marvel’s current master toy licensee to the Licensee and, at the end of the Term, from the Licensee to Licensor itself or
to a successor licensee, with regard to maintaining merchandise space at key retailers, developing new lines in a timely manner and maintaining appropriate stock and inventory levels during the transition. 
  

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 (i) If, during the Term, Marvel and its licensees do not release a minimum of eight
(8) Qualifying Theatrical Releases (as defined herein), including a minimum of four (4) Mega Property Qualifying Theatrical Releases (as defined herein) (the aggregate release of all of such films being referred to as the “Marvel
Entertainment Commitment”) between the commencement of the Term and December 31, 2017 (or December 31, 2018, in the event that the Commencement Date is January 1, 2013) then the Term of this Agreement shall be extended by one
year (i.e., until December 31, 2018 or December 31, 2019, as the case may be). 
 (ii) Notwithstanding anything to the
contrary above, if Marvel and its licensees release one or more Qualifying Theatrical Releases during the final calendar year of the Term, as it may be extended (“Term Final Year Releases”), Licensee’s rights with respect to any Term
Final Year Releases shall extend until the end of the calendar month that is twelve (12) months after the United States release date of such Term Final Year Release. 
 (d) Eighteen (18) months prior to expiration of the Term Marvel shall submit in writing its schedule of films and television series based on its best knowledge at such time for a prospective renewal
term. Licensee shall have a Right of First Negotiation (as defined below) for the rights granted hereunder after the expiration of the Term hereof unless Marvel elects to exploit the rights directly itself. “Right of First
Negotiation” shall mean the following: prior to beginning negotiations with a third party regarding the rights granted herein, Marvel shall give written notice to Licensee and for seventy five (75) days from the mailing of the notice
(the “Negotiation Period”), Marvel and Licensee shall negotiate in good faith. If Marvel and Licensee have not executed a binding agreement by expiration of the Negotiation Period, Licensor shall be free to grant any and all rights
to any third party. 
  

	4.	RESERVATION OF RIGHTS 

 (a) Licensor hereby reserves all rights not herein specifically granted to Licensee. 
 (b) Television, etc.
Except only for the visual reproduction or presentation of the actual Licensed Articles licensed hereunder or of the actual packaging therefor or as may be expressly provided in this Agreement, Licensee shall not use the Property or the Licensed
Articles identified with the Property in connection with any manner of television, radio, motion picture, filmstrip, webcast, Internet broadcast, sound and/or visual recording or transmission device or media, or anything similar to the foregoing now
known or hereafter developed without Marvel’s prior written approval. The name and/or likeness of any performer portraying any character included within the Property on radio, television, or in any other media or form shall not be deemed to be
included in the Property, and the use thereof is not licensed. 
  

	5.	ROYALTIES, PAYMENTS, REPORTS, RECORDS AND BRAND INTEGRITY 

 (a) Royalties. Licensee agrees to pay Licensor royalties at the Royalty Rate identified in Section 1(g), determined as follows: 
 (i) Royalties shall be calculated by applying the Royalty Rate identified in Section 1(g) to Licensee’s (or its Affiliates’)
Net Sales (defined below). “Affiliate” means, with respect to any party, any other party directly or indirectly controlling or that is controlled by or is under common control with such party. For the purposes of this definition,
“control” means the possession of the power to direct or cause the direction of the management and policies of such Person, whether through the

  

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ownership of voting securities, by contract or otherwise. “Affiliated” and “Unaffiliated” shall have corresponding meanings. 
 (ii) 
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 (iii) Royalties as specified herein shall become due on the last day of each of Hasbro’s quarterly fiscal periods, and shall be paid not later than thirty (30) days following the end of the
Hasbro fiscal period for all Net Sales accruing for the United States, Canada and their respective territories and possessions in that Hasbro fiscal period and not later than sixty (60) days following the end of the Hasbro fiscal period for all
Net Sales accruing in the remainder of the Territory in that Hasbro fiscal period, accompanied by the Royalty Report required herein. Royalties are due on any and all sales or other disposition of the Products. Products shall be considered sold and
Net Sales shall be deemed accrued for all purposes hereunder on the date of shipment or the date that the shipment is invoiced by the Licensee, whichever date is earlier. Hasbro’s fiscal year ends on a Sunday within two weeks of the end of each
calendar year, and Hasbro’s quarterly fiscal periods typically consist of thirteen (13) weeks each, ending on a Sunday. 
 (iv) Licensee’s (and its Affiliates’) sales and pricing policies shall reasonably optimize maximum availability of the Licensed Articles in the Territory and Channels of Distribution while avoiding deep discounts, liquidation,
close-outs, over-production, “market flooding” or other disparaging pricing and related production practises which would reasonably constitute “dumping” as the term is generally understood in the consumer products industry,
unless specifically agreed to in advance and in writing by Licensor. 
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 Nothing herein shall be
construed as granting Licensor the right to set or approve Licensee’s pricing, and nothing shall be deemed to restrict Licensee’s ability to set prices in its own unfettered discretion. 
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 (b) N/A 
 (c) Currency, Wire Payment and Taxes. All payments to Licensor shall be made in United States Dollars, shall be computed at the
exchange rate published by the Wall Street Journal as of the last business day of the month preceding the month for which the Royalties are being calculated. All payments to Marvel shall be made via wire transfer to Bank: HSBC Bank USA, Beverly
Hills, CA 90210, Branch: HSBC Bank USA, 445 N. Bedford Drive, Beverly Hills, CA 90210, Account Name: Marvel Characters B.V., Account # 178-786527, ABA# 122240861, IF WIRE IS TO BE MADE VIA SWIFT OR CHIPS WIRE SERVICES: Swift Code #: HSBCUS33.
Reference: HASBRO: D09001. (except for Spider-Man Movie Characters royalty payments, in which event the wire transfer shall be made to HSBC Bank USA, NA., Beverly Hills, CA; Bank Transit ABA #:122240861; Bank Account #:178788104; Account Name:
Spider-Man Merchandising, L.P. Swift Code: HSBCUS33). If payment is late, Marvel has the option to require that payment be made at the exchange rate existing on the day preceding payment. All taxes, levies, charges or duties imposed on license
rights, artwork or similar material, or payments therefor (excluding income taxes and fees applicable to Licensor) shall be paid by Licensee and no deductions for such taxes, levies, charges or duties shall be made from amounts owed Marvel
hereunder, it being the intent hereof that all royalties payable to Marvel be free and clear of any taxes, levies, charges or duties of any kind whatsoever (excluding income taxes and fees applicable to Licensor). 
 (d) Royalty Reports. For each Hasbro fiscal period specified in Section 5(a)(iii), commencing with the end of the Hasbro fiscal
period following the Commencement Date of this license and continuing until a final certification of wind-up is delivered, Licensee shall furnish Licensor with a detailed Royalty Report certified to be accurate by an authorized representative of
Licensee, showing all information called for by Licensee’s standard royalty reporting forms for each Licensed Article. Licensee shall provide two separate Royalty Reports as follows: one for Licensed Articles utilizing Spider-Man Movie
Characters and one for all other Licensed Articles. Upon request from Marvel, Licensee shall use reasonable efforts to forecast and project anticipated royalties for the next four (4) Quarterly Hasbro fiscal periods; provided that in no way
shall Licensee be accountable for the ultimate accuracy of such forecasts. Each Royalty Report (including Royalty Reports showing only Spider-Man Movie articles) shall be furnished to Marvel via e-mail (or other mutually agreed-upon means) to
royaltyreports@marvel.com within thirty (30) days after the end of the Hasbro fiscal period for which such Royalty Report is made in the United States and Canada and sixty (60) days after the end of the Hasbro fiscal period for which such
Royalty Report is made for the remainder of the Territory, and shall be accompanied by payment to Marvel or the LP, as applicable, of any and all monies due for the Licensed Articles. Such Royalty Report shall be furnished whether or not there are
any Net Sales during the preceding Hasbro fiscal period, and whether or not any monies are then due. The receipt or acceptance by Licensor of any of the Royalty Reports furnished pursuant to this Agreement or of any payments made hereunder (or the
receipt of any wires paid hereunder) shall not preclude Licensor from questioning its accuracy during the period allowed for audits as set forth in this Agreement, and in the event that any inconsistencies or mistakes are discovered in such Royalty
Reports or payments, they shall promptly be rectified and the appropriate payment made by Licensee or Licensor as the case may be, together with interest on any overdue payments at the rate specified in Section 17(c) hereof. Licensee shall
provide to Licensor on a monthly basis, by the fifteenth day of each calendar month, Licensee’s estimates of approximate royalties earned on (i) sales of Licensed Articles in the United States and Canada in the preceding calendar month and
(ii) sales of Licensed Articles in all other territories in the next preceding calendar month (e.g., the estimates provided by March 15 will be for royalties earned on (i) sales in the United States and Canada in February and
(ii) sales in all other

  

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territories in January); provided that in no way shall Licensee be accountable for the ultimate accuracy of such estimates. 
 (e) Records. Licensee shall maintain (or make available at such address upon Licensor’s request) at its expense, detailed,
accurate, full and complete records and books of account covering all transactions by it relating to this Agreement, and Licensor and its duly authorized representatives shall have the right, no more than twice during each calendar year during
normal business hours, and no later than thirty (30) days from written notice, to examine and/or audit such records and books of account and all other documents and materials in the possession or under the control of Licensee relating or
pertaining to the subject matter or provisions of this Agreement and to make copies and/or extracts therefrom for purposes of the audit only. Licensor agrees to coordinate its audits hereunder with the audits, if any, conducted by Marvel under the
New Service Agreement. In the event that Licensor’s duly authorized representatives shall discover a deficiency for any accounting period of five percent (5%) or more by any such examination and/or audit, Licensee shall pay to Licensor the
reasonable cost of such examination. Licensee shall keep all such books of account and records available to Licensor for at least two (2) years after the termination or expiration of this Agreement. If Licensee fails to keep and disclose such
records, Licensor shall have the right to reasonably estimate, and demand payment for, such additional royalty as may be indicated owing by such trade information as may be available. 
  

	6.	LICENSOR TITLE AND GOODWILL 

 (a) General. Licensor represents and warrants to the best of its knowledge with respect to trademark and servicemark rights (including, but not limited to, trade dress and goodwill pertaining to such marks), and without limitation
with respect to all other of the following items and rights, and Licensee acknowledges to the extent of such representation and warranty (i) that Licensor is the owner and/or controller of all right, title and interest in and to the Property
and the Characters included therein and all associated trademarks and copyrights, (ii) the great value of the goodwill associated with the Property, and that the Property has acquired secondary meaning in the mind of the public and
(iii) that the trademarks and copyrights included in the Property, and the registrations therefor, are valid and subsisting. Licensee further agrees that it shall not during the Term of this license or at any time thereafter dispute or contest
directly or indirectly, or do or cause to be done any act which in any way contests, impairs or tends to impair Licensor’s exclusive rights and title to the Property, or the validity thereof or the validity of this Agreement, and shall not
assist others in so doing. Licensor represents and warrants that it has all necessary rights to grant to Licensee the rights contemplated hereby free of any encumbrances whatsoever and that such grant shall not infringe on the rights of any other
party. 
 (b) Representations of Ownership, etc. Licensee shall not in any manner represent that it has any ownership in
the Property, or in any trademarks or copyrights included in the Property (or registrations therefor), but may, only during the Term of this license, and only if Licensee has complied with all laws and registration requirements (other than
registration requirements of which Licensee has no actual knowledge) within the Territory for so doing of which Licensor has provided notice to Licensee, represent that it is a “licensee” or “official licensee” hereunder.
Licensee shall not register or attempt to register any copyright or trademark in the Property, in its own name or that of any third party, nor shall it assist any third party in doing so. 
 (c) Use for Benefit of Licensor. Licensee agrees that any and all uses and sales by Licensee of the Property under this Agreement
shall inure to the benefit of Marvel and that neither such uses or sales nor anything contained in this Agreement shall give or assign Licensee or any other person or entity any right, title or interest in the Property, or in any properties owned by
Licensor which are not

  

 20 

 
licensed hereunder, except the right to use the Property specifically in accordance with the provisions of this Agreement; provided that Licensee shall remain the owner of all Licensee’s
patents, trademarks, copyrights or other intellectual property contained in the Licensed Articles that are separate or separable from the Property and all adaptations, compilations, modifications, translations and versions thereof. Except in
connection with “Transformers” action figures, “Titanium” figures and vehicles, “Beyblade” tops and accessories, Licensee’s owned or controlled game brands and “Attacktix” figure tactics games and unless
otherwise approved in writing, Marvel Licensed Articles may not be co-mingled and/or bundled with any non-Marvel properties and/or trademarks (other than the conventional use of the “Hasbro,” “Playskool,” “Tiger”,
“Galoob”, “Milton Bradley”, “Parker Brothers”, or “Kenner” corporate trademarks) unless specifically authorized in writing by Marvel. Except as otherwise approved in writing by Marvel, Licensed Articles shall
not include any other trademarks (except Licensee’s non-character marks and its distributors marks), characters or properties, whether owned by Licensee or another (e.g. GI Joe, Star Wars etc. may not appear in the same packaging, advertising
or marketing materials as Licensed Articles). Notwithstanding the foregoing, Licensor acknowledges that Licensee may co-mingle other brands and trademarks with the Property for the purpose of advertising, packaging and cross-selling its Titanium and
Attacktix product lines. Licensor further acknowledges that Licensee shall co-mingle the Property with Licensee’s proprietary brands for the purpose of manufacturing, distributing and promoting Games hereunder. Except as provided above, no
Licensed Article shall be sold in any manner intended to promote the sale of any other product or service (other than another Licensed Article) without Licensor’s prior written consent in each instance. 
  

	7.	PROTECTION OF RIGHTS-INCLUDING COPYRIGHTS AND TRADEMARKS 

 (a) General. Licensee shall cooperate reasonably and in good faith with Licensor, at Licensor’s expense for the purpose of Licensor securing and preserving Licensor’s (or any grantor of
Licensor’s) rights in and to the Property. Upon creation of Licensed Articles embodying the Property, Licensee shall be deemed to have automatically assigned to Licensor all copyrights solely in the Property (and all adaptations, compilations,
modifications, translations and versions of the Property) embodied in the Licensed Articles; provided that Licensee shall remain the owner of all Licensee’s patents, trademarks, copyrights or other intellectual property contained in the
Licensed Articles that are separate or separable from the Property and all adaptations, compilations, modifications, translations and versions thereof. In addition, each party shall execute any instruments requested by the other party to accomplish
or confirm the foregoing. Any such assignment shall be without consideration other than the mutual covenants and considerations of this Agreement. Licensee agrees that it shall be primarily liable to Licensor under the terms of this Agreement for
any actions or omissions on the part of Licensee’s lenders, including but not limited to (i) shipping and fulfilling orders for the Licensed Articles (ii) paying the royalties or Minimum Royalty Guarantee payments (iii) shipping
only finished Licensed Articles, in the same packaging and boxes as Licensee would have used; (iv) sale or other disposition of Licensed Articles shall be permitted only for so long as the applicable sell-off period is authorized hereunder,
etc. 
 (b) Trademarks and Copyrights. Licensor represents and warrants to the best of its knowledge with respect to
trademark and servicemark rights (including, but not limited to, trade dress and goodwill pertaining to such marks), and without limitation with respect to all other of the following items and rights, and Licensee acknowledges and agrees to the
extent of such representation and warranty that the names, characters, symbols, designs, likenesses, and visual representations, among other things, comprising the Property are owned by Marvel or the LP, and Licensee agrees that it shall cause to
appear on everything which uses, bears or displays the Property or any part thereof, including all Licensed Articles, tags, labels and the advertising, promotional, packaging and display material

  

 21 

 
therefor, a notice proclaiming and identifying the relevant portions of the Property appearing therein as properties of Licensor, as, for example, by labeling each name and character likeness
with this Trademark and Copyright notice: Name(s) of character(s)] and the distinctive likeness(es) thereof are Trademarks of Marvel Characters B.V. and are used with permission. Copyright © [year of first publication of Marvel material by Licensee, in Arabic numerals] Marvel Characters B.V. All Rights Reserved. www.marvel.com, or otherwise as Marvel may
deem appropriate. In the event the product features Spider-Man Movie Character(s), the notice shall provide ©
[year date] Columbia Pictures Industries Inc. All Rights Reserved Trademark: Spider-Man, and all related characters, ®
 [year date] Marvel Characters B.V. All Rights Reserved. (or such other legal line as Licensor may reasonably deem appropriate). 
 (c) Notice of Supervision. Every Licensed Article and all advertising, promotional, packaging and display material therefor shall also bear this notice of supervision: This [Description of Licensed
Article] is produced under license from Marvel Characters B.V. (or an equivalent if given prior written approval by Licensor) in order to notify the public that Licensor’s standards are maintained. 
 (d) N/A 
 (e)
Confusing Use. Licensee shall not use, and shall use reasonable efforts to keep others with whom Licensee does business from using, the Property in any manner likely to cause confusion or doubt in the mind of the public as to the ownership,
source, sponsorship and control thereof or in any manner that does not make clear that the Property is owned and controlled exclusively by Licensor. In addition, except as noted below, Licensee shall not use or co-mingle with the Property, and shall
use reasonable efforts to keep others from using or co-mingling with the Property, any other trademarks, characters or properties, whether owned by Licensee or another, so as to suggest that such other trademarks, etc. may have been created or may
be owned, controlled, licensed or approved by Licensor or that they are in any way related to the Property or Licensor. Notwithstanding the foregoing, Licensor acknowledges that Licensee may co-mingle other brands and trademarks with the Property
for the purpose of developing, advertising, packaging and cross-selling its Transformers, Beyblade and Titanium and Attacktix product lines. Licensor further acknowledges that Licensee shall co-mingle the Property with Licensee’s proprietary
brands for the purpose of manufacturing, distributing and promoting Games hereunder. 
 (f) Registration. Licensee agrees
to reasonably cooperate with and assist Licensor, at Licensor’s expense, in the prosecution of any copyright, trademark or service mark applications concerning the Property that Licensor may desire to file, and for that purpose, Licensee shall,
upon request, supply to Licensor a reasonable number of samples of the Licensed Articles or other material as may be required in connection with any such application. Furthermore, Licensee shall execute any instrument Licensor shall reasonably deem
necessary or desirable to record or cancel Licensee as a registered user of the trademarks of Licensor included in the Property. 
 (g) Customer Complaints. Licensee shall, in connection with its duty to use the Property so as to promote the continuing goodwill thereof, give attention to legitimate customer complaints brought against Licensee in connection with
the Licensed Articles or other materials using the Property. Licensee shall give Licensor prompt notice of all complaints that might affect the good standing of the Property or the reputation of Licensor and also of all complaints that might result
in legal action between Licensor and any third party, and reasonably cooperate with Licensor upon request to achieve as good a reputation and press for the Property as possible. 
  

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 (h) Copyright Notice. It is a condition of this license that prior to public
distribution, Licensee shall cause to appear the copyright notice specified in Section 7(b) on all Licensed Articles, tags, labels and the advertising, promotional, packaging and display materials therefor, or otherwise as Licensor may instruct
in writing or approve upon request. 
 (i) Secure Copyrights, etc. Licensor may register, in its name (or the name of
another, including Licensee, if desired by Licensor), to the fullest extent possible, the copyrights in the Property and the registrations, renewals and extensions thereof, embodied in the Licensed Articles, including all adaptations, translations,
modifications and versions of the Property. It is also a condition of this license that all Licensed Articles and other materials produced under this Agreement only to the extent that they embody the Property shall be produced as works made for hire
for Licensor; provided that Licensee shall remain the owner of all Licensee’s patents, trademarks, copyrights or other intellectual property contained in the Licensed Articles that are separate or separable from the Property and all
adaptations, compilations, modifications, translations and versions thereof. 
 (j) Licensee shall use commercially reasonable
efforts to ensure that all retailers and authorized distributors purchasing Licensed Articles comply with Licensee’s anti-counterfeiting/anti-piracy system policies established from time to time. 
  

	8.	QUALITY OF MERCHANDISE AND SERVICES; LICENSEE NAME ON LICENSED ARTICLES 

 (a) Quality of Merchandise. Licensee agrees that the Licensed Articles, all packaging, labels, advertising and promotional material
for the Licensed Articles (“Associated Materials”) and any press release or other public statement relating to the Licensed Articles or to this Agreement (other than legally required disclosures, provided that Licensor is given, to
the extent reasonably practicable, an opportunity to review and comment) shall have the prior written approval of Licensor before the first sale, distribution, display or release of any kind or in any media and shall be of a high standard customary
in the entertainment toy industry and of such style, appearance and quality as shall be adequate and suited to their exploitation to the commercial advantage and to the protection and enhancement of the Property and the goodwill pertaining thereto;
that the Licensed Articles and/or Associated Materials shall be manufactured, packaged, sold, distributed, advertised and serviced in accordance with all applicable laws; that the policy of sale, distribution, and/or exploitation by Licensee shall
be of equivalent high standard and style customary in the entertainment toy industry; and that the same shall in no manner reflect adversely upon the Property or Licensor. Licensee further agrees that it shall comply with all applicable laws, rules
and regulations regarding product safety. Licensee further agrees that all rights granted herein shall be exploited and exercised by Licensee so as not to interfere with, or detract from, the public image of the Property. Accordingly, Licensee
further specifically covenants and agrees to keep Licensor reasonably informed of its plans for use of the Property, and to consult Licensor as the Licensed Articles and/or Associated Materials are being prepared, so that there will be full
opportunity for Licensor to deter Licensee from any use that would detract from the public image of the Property. Licensee will abide by the policies, procedures and processes set forth on Exhibit D attached hereto and will reasonably consult with
Licensor at every stage identified in that Exhibit in designing the Licensed Articles and/or Associated Materials regarding the utilization of the Property, and shall work with Licensor to obtain Licensor’s creative input concerning the
Property and the overall look and direction of the Licensed Articles and/or Associated Materials. Licensee shall submit to Licensor’s New York Office (e-mail: licensingapprovals@marvel.com) (except in respect to articles utilizing
Spider-Man Movie Characters, in which event each submission shall be sent to Laetitia_May@spe.sony.com and to Eric_Thomsen@spe.sony.com; such email addresses may be changed by Licensor from time to time)

  

 23 

 
or such other office as Licensor may designate in writing, for written approval without charge, all designs, concepts and/or prototypes of each item, class, part or category of the Licensed
Articles and/or Associated Materials, with respect to the Properties licensed hereunder upon the Brand Assurance form (or other form as Licensor may reasonably designate from time to time) attached hereto as Exhibit E. In connection therewith,
Licensee shall be faithful in the portrayal of the Properties to Licensor’s basic conceptualization of the Property. Any item submitted to Licensor shall be deemed disapproved unless the same shall be approved in writing within ten
(10) business days (five (5) to seven (7) business days in Gate 6) of receipt of the samples. Notwithstanding the foregoing, if Licensor expressly disapproves of any material it shall state the reasons therefor. Licensee shall use
commercially reasonable efforts to make such changes as are reasonably requested by Licensor after an inadvertent approval or change of conditions; provided that Licensor shall reimburse Licensee for Licensee’s reasonable costs associated with
such inadvertent approval and subsequent disapproval. After samples have been approved pursuant to this section, Licensee shall not depart therefrom in any respect without Licensor’s prior written consent. No approval of any submitted product
or item by Licensor shall be construed to expand or enlarge the scope of the license granted hereunder. Licensee shall submit to Licensor’s New York Office, to the attention of: Legal Department (except in respect to items utilizing Spider-Man
Movie Characters, in which case the address shall be Spider-Man Merchandising LP West, 10202 W. Washington Blvd., Jimmy Stewart Building, Third Floor, Culver City, CA 90232), free of cost, thirty (30) samples of finished Licensed Articles and
six (6) copies of each piece of Associated Material(s) therefor prior to sale or publication, and Licensee shall provide two additional (2) samples to Licensor upon request 
 (b) Revocation of Approval. In the event that the quality, appearance or style of any Licensed Article previously approved by
Licensor ceases to be acceptable to Licensor, Licensor shall have the right, in its sole discretion, to withdraw its approval of such Licensed Article and to require that Licensee redesign such Licensed Article in a manner consistent with
Licensor’s new policies. In the event of such withdrawal, Licensee shall as soon as practicable cease the production of the previously approved Licensed Article and shall have a six (6) month sell-off period for such Licensed Article.

 (c) The Licensor logo, the URL address for Licensor’s website (www.marvel.com or, in the case of articles utilizing
Spider-Man Movie Characters, www.spiderman.sony.com), artwork, and customer service information shall be placed prominently on outside packaging and Licensee’s name or trade name (or a trademark of Licensee which Licensee has advised Licensor
in writing that it is using) shall prominently appear on permanently affixed labeling on each Licensed Article and, if the Licensed Article is sold to the public in packaging or a container, printed on such packaging or a container so that the
public can identify the supplier of the Licensed Articles. On soft goods, “permanently affixed” shall mean sewn on. On hard goods, “permanently affixed” shall mean molded into or printed on the product. On packaging,
“permanently affixed” shall mean printed on the package. Upon request, Licensee shall advise Licensor in writing of all trade names or trademarks it is using on Licensed Articles being sold under this Agreement if such names or marks
differ from Licensee’s corporate name or other names referenced herein. Licensee agrees that it shall maintain a toll-free number through which consumers calling from the United States may contact Licensee during normal working hours concerning
the Licensed Articles. 
 (d) Notwithstanding any provision that may be construed to the contrary set forth in this
Section 8, Licensor agrees with respect to the exercise of its approval rights, (i) to take into consideration the common standards and practices of the entertainment toy industry; (ii) not to withhold or delay any approvals required
hereunder unreasonably, and (iii) to use its commercially reasonable efforts to expedite its approvals. In each case where any item is disapproved by

  

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Licensor, Licensor will inform Licensee in writing of the detailed reasons for its disapproval and will make suggestions as to the desired changes, the implementation of which will result in
Licensor’s approval upon resubmission by Licensee. Licensor agrees that any press release or other public statement relating to the Licensed Articles or to this Agreement (other than legally required disclosures, provided that Licensee is
given, to the extent reasonably practicable, an opportunity to review and comment) shall have the prior written approval of Licensee before release of any kind or in any media. 
 (e) Approval Limitation. Any and all approvals required by Licensor hereunder shall be valid only if in writing and signed by (or if
in an e-mail message from) an employee of the Brand Assurance Department or other employees of Licensor designated in writing by the Brand Assurance Department. Licensee understands that no oral approval or written approval by any other employee may
be relied upon or shall bind Licensor. Any reliance on any oral or written modification by any other employee shall be at Licensee’s own detriment and risk. 
 (f) Inspection. Licensor or its authorized agents or representatives shall have access to Licensee’s and/or its subcontract manufacturer(s) premises at all reasonable times, upon reasonable
notice, with the right to a full inspection of the production of the Licensed Articles in order to satisfy itself that its standards are maintained, and with the right to be supplied, on request, with a reasonable number of free samples of all
Licensed Articles in preparation and the raw materials and ingredients used therein. 
  

	9.	[deleted] 

  

	10.	INFRINGEMENT, INDEMNIFICATION AND INSURANCE 

 (a) Infringement of Property. Each party shall promptly notify the other party, in writing, of any imitations or infringements of the Licensed Articles or the Property contained therein or the
rights licensed hereunder which may come to such party’s attention. Licensor shall have the sole right to determine whether or not any demand, suit or other action shall be taken on account of or with reference to any such infringements or
imitations, and Licensee shall not institute any suit or take any action on account of any such infringements or imitations without first obtaining the written consent of Licensor to do so. Licensor, if it so desires, may commence or prosecute any
suits or make any such demands in its own name or, if Licensee approves, which approval shall not be unreasonably withheld, in the name of Licensee or join Licensee as a party thereto. Licensee shall cooperate with Licensor, at Licensor’s
expense, in any manner that Licensor may reasonably request in connection with any such demands, suits, claims or other actions. If Licensor elects not to sue, Licensee may request permission to bring suit and, with written permission, may bring
suit at its own expense, provided Licensee indemnifies Licensor against any loss or damage, including any loss or damage to reputation or goodwill, and provided that trial counsel is approved by Licensor, which approval shall not be unreasonably
withheld, keeps Licensor fully informed, and further provided that Licensor shall have the right to assume control of the litigation at any time, but is thereupon responsible for its own further litigation expense and shall reimburse Licensee for
Licensee’s reasonable litigation expenses incurred prior to such assumption of control. Licensee may not settle any case under this section without Licensor’s written approval (which approval shall not be unreasonably withheld). In cases
where the infringement was first brought to Licensor’s attention by Licensee, any recovery shall (i) first go to reimbursing the party who has ultimately controlled the litigation or claim process and who has been responsible for payment
of expenses associated therewith for such expenses; (ii) then, go to reimbursing the other party for any of its expenses associated with the litigation or claim process and (iii) then, be split 50/50 between the

  

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parties. Nothing herein shall be construed as imposing any obligation upon Licensor or Licensee to take action against any alleged infringer. 
 (b) Infringement of Other Rights. In its use of the Property, or any element or portion thereof, Licensee shall exercise reasonable
care, and shall cooperate fully with Licensor, to avoid infringing any rights found to be owned by others in the Territory. Upon receiving written notice alleging the existence or possible existence of rights held by others which may be infringed by
the use of any element or portion of the Property under this Agreement, each party shall promptly notify the other party in writing. 
 (c) Indemnification of Licensee. Licensor shall defend, indemnify and hold Licensee and its parents, subsidiaries, and associated and affiliated companies, harmless of, from and against any charges, suits, actual damages, costs,
expenses (including reasonable attorneys’ fees), judgments, penalties, claims, liabilities or losses of any kind or nature whatsoever, which may be sustained or suffered by or secured against Licensee based upon or arising out of any actual or
alleged trademark or copyright infringement arising out of the use by Licensee of the Property as authorized in this Agreement, or any other actual or alleged unauthorized action of Licensor, including a breach by Licensor of its representations or
warranties or other term of this Agreement, provided that: prompt notice is given to Licensor of any such claims or suits (but failure to give such notice shall relieve Licensor of its obligations under this subsection only to the extent that such
failure is prejudicial to Licensor) and provided further that: Licensor shall have the option to undertake and conduct the defense and/or settlement of any such claims or suits against third parties and that Licensee reasonably cooperates with
Licensor in the defense of any such claims or suits and Licensee acts reasonably to mitigate any damages. No settlement of any such claims or suits involving more than the payment of money by Licensor shall be made without the prior written consent
of Licensee (which consent shall not be unreasonably withheld). In no event shall Licensor be liable for punitive or exemplary damages, nor for lost profits. Licensor does not warrant any present or future commercial value of the Property.

 (d) Indemnification of Licensor. Licensee shall defend, indemnify and hold Licensor and its parents, subsidiaries, and
associated and affiliated companies, harmless of, from and against any charges, suits, actual damages, costs, expenses (including reasonable attorneys’ fees), judgments, penalties, claims, liabilities or losses of any kind or nature whatsoever,
which may be sustained or suffered by or secured against Licensor in connection with the Licensed Articles, or based upon or arising out of any actual or alleged unauthorized use of any patent, trade secret, process, idea, method or device, or any
copyright or trademark, other than under this license, or the packaging, distribution, promotion, sale or exploitation of the Licensed Articles, any actual or alleged defect in the Licensed Articles or their packaging, whether latent or patent,
including failure of said Licensed Articles or their packaging, distribution, promotion, sale or exploitation to meet any Federal, State or local, or other applicable laws or standards; or any other actual or alleged unauthorized action of Licensee,
including a breach by Licensee of any of its representations or warranties or other term of this Agreement, provided that: prompt notice is given to Licensee of any such claims or suits (but failure to give such notice shall relieve Licensee of its
obligations under this subsection only to the extent that such failure is prejudicial to Licensee) and provided further that: Licensee shall have the option to undertake and conduct the defense and/or settlement of any such claims or suits against
third parties and that Licensor reasonably cooperates with Licensee in the defense of any such claims or suits and Licensor acts to reasonably to mitigate any damages. No settlement of any such claims or suits involving more than the payment of
money by Licensee shall be made without the prior written consent of Licensor (which consent shall not be unreasonably withheld). In no event shall Licensee be liable for punitive or exemplary damages, nor for lost profits. 
  

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 (e) Insurance. Licensee shall obtain at its own expense and maintain during the Term
of this Agreement and for three (3) years thereafter, general liability insurance including advertising, blanket contractual and product liability coverages. Hasbro declares it is “self-insured” for all other types of claims. All
insurance must be provided by a recognized insurance company having a Best’s Rating of no less than “A” providing adequate protection at least in the amounts specified in Section 1(k) for personal bodily injury and property
damage for Licensor and also for Licensee. Said insurance shall be primary and non-contributory with respect to any insurance carried by Licensor. Upon return to Licensor of Licensee’s signed originals of this Agreement, Licensee shall furnish
to Licensor’s New York Office, to the attention of Senior Contracts Administrator, a certificate evidencing that such insurance is in force, naming Licensor its subsidiaries, associated and affiliated companies as additional insured parties and
providing that such coverage will not be canceled without at least thirty (30) days notice to Licensor. Failure to provide the insurance certificate shall be a matter for Dispute Resolution. Said insurance coverage shall be effective as of the
Commencement Date. Any proposed change in the insurance policy(ies) affecting Licensor’s coverage shall be submitted for review as to the policy compliance with the terms and conditions of this Agreement, to Licensor’s New York
Office, to the attention of Senior Contracts Administrator. The policy(ies) of insurance must be non-cancelable except after thirty (30) days prior written notice to Licensor’s New York Office, sent to the attention of Senior Contracts
Administrator. As used in Section 10 (d), “Licensor” shall also include the agents, employees, assignees of Licensor, and their respective officers, directors, agents and employees. As used in Section 10 (c), “Licensee”
shall also include the agents, employees, assignees of Licensee, and their respective officers, directors, agents and employees. This provision shall survive the termination or expiration of this Agreement. 
  

	11.	ARTWORK 

 (a) Licensee
shall have, at no cost to Licensee, access to Marvel’s online style guides (the “Style Guide(s)”), which shall depict the Property for use in the Licensed Articles, as well as other information relating to the Property that
Licensee may reasonably request. Licensee understands that in the event any fees or royalties are due creators or artists who are independent of Licensor as a result of certain artwork or story-lines, Licensee shall be responsible for the payment of
such fees and/or royalties upon invoicing therefor; provided Licensor has notified Licensee of such fees in writing in advance. Payment of any fees associated therewith shall not be credited against any guarantee or other amount due Licensor. During
the Term, Licensee shall at its cost and upon Licensor’s reasonable request, promptly provide Licensor (by CD, T-1 line or other digital means) with any high-resolution artwork of the Property created by Licensee. Licensor shall use
commercially reasonable efforts to support Licensee’s presentations to retail customers with any available creative materials (sizzle tapes, images, trailers) cleared for use and pertaining to Marvel/LP Entertainment Properties. 
 (b) All artwork involving the Property only to the extent that it embodies the Property, or any reproduction thereof, and all copyrights
therein shall, notwithstanding its use by Licensee, be and remain solely the property of Licensor and Licensor shall be entitled to use the same and to license the use of the same by others. Any reproduction or use of such artwork shall be on a
non-exclusive basis. 
 (c) Licensee shall obtain and promptly furnish to Licensor’s New York Office, sent to the attention
of Senior Contracts Administrator, on the form annexed hereto as Exhibit B, an agreement signed by each independent contractor who creates, prepares or produces for or on behalf of Licensee any artwork involving the Property only to the extent that
it embodies the Property or any reproduction thereof, stating that such artwork is a work made for hire for Licensee under the U.S. Copyright Laws and acknowledging that such person has no copyright or other rights of any kind in or to such artwork.

  

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Licensee shall be deemed to have automatically assigned to Licensor all copyrights in any materials created by or for Licensee in the Licensed Articles only to the extent that they embody the
Property; provided that Licensee shall not be obligated to assign, and shall remain the owner of, Licensee’s copyrights contained in the Licensed Articles to the extent that they are separate or separable from the Property. Further, each party
shall execute any instruments requested by the other party to accomplish or confirm the foregoing assignment. 
  

	12.	PROMOTION 

 Licensor
shall have the right, but shall not be under any obligation, to use the Property so as to give the Property, Licensee, Licensor and/or programs connected with the Property full and favorable prominence and publicity; provided that nothing in this
section shall mitigate the effects of Sections 3(c) and 5(b) hereof. If the Licensed Articles appear in film produced by or under authority of Licensor, there shall be no obligation by Licensor to discontinue use of such film or any part thereof at
the expiration or termination of this license and such continued use shall in no way be construed as an extension of the Term hereof or of this license. 
  

	13.	DISTRIBUTION, AND BUSINESS PLANNING/MARKETING AND TOOLING COMMITMENTS 

 (a) Distribution. Licensee shall diligently and continuously use reasonable efforts, as determined in Licensee’s business
judgment, in the Territory licensed hereunder and during the Term of this license, to sell the Licensed Articles, to make and maintain adequate arrangements for the distribution of the Licensed Articles, and to promote and expand its sales
hereunder. Licensee shall not sell or distribute the Licensed Articles on a consignment basis. Licensee shall also have the right to distribute and sell the Licensed Articles on home shopping television programs provided Licensor’s prior
written approval of the dates for the shows, and the Licensor product to be featured thereon, is obtained so that Licensor may avoid any conflicts with any previously scheduled home shopping television shows featuring Licensor product. Failure to
submit for prior written approval the dates of the show or the product shall be considered a matter for Dispute Resolution. Licensee acknowledges that it has no right to and shall not, without prior written consent of Licensor, sell or distribute
the Licensed Articles to anyone whose sales or distribution are or will be made for publicity, promotional or tie-in purposes, combination sales, premiums, giveaways, or whose business methods are or are reported to be questionable. 
 ************************************************************************** 
 ************************************************************************** 
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	(c)	 Marketing Commitment. During the Term, Licensee agrees to commit to

  

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marketing and promotional expenditures in direct support of the Licensed Articles in an amount equal to not less than ****************** of total Net Sales (except close-out sales or sales to
Unaffiliated distributors) in the Territory. The following points shall be “True-Up Points” for the purposes of this subsection: the end of the second calendar year in which Licensee sells products hereunder and the end of each following
calendar year during the Term. At each True-Up Point, if Licensee’s marketing and promotional expenditures over the Term have been less, to date, than the percentages described above, Licensee’s semi-annual plans (described below) for the
following calendar year shall call for Licensee to make such marketing and promotional expenditures as would be reasonably calculated to bring those expenditures over the elapsed Term as of the end of such following year to the percentages described
above.  ****************************************************** 
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 (d) As part
of the expenditures described in Section 13(c) above, Licensee commits to purchase advertising from Marvel, for any Hasbro product that Hasbro may determine, a total Advertising Commitment of******************************************* ****
which, if such expenditures are not begun until the commencement of the Term, such expenditures shall be spent in amounts of not less ******************************************************* per year of the Term. In no event shall Licensee’s
commitment hereunder exceed ****************************************************************. Licensee shall have the option to purchase (or spend) either (i) advertising in Marvel’s comic book (Junior Network) at the rate of
************************************** per page; or (ii) advertising on Marvel’s age appropriate owned and operated websites at the rate of ***************************** (for the avoidance of doubt, the online advertising shall not
include “Rich Media” of any kind); or (iii) ******************************************************************************or (iv)
 *********************************************************************************************************** 
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 ************************************************************************** Marvel agrees to credit the Advertising Commitment through any subparagraph (iv) executions that occur prior to the
Commencement Date. In the event of any such executions prior to the Commencement Date, the obligation for minimum yearly expenditures referenced above shall be null and void. Licensee shall give Marvel two (2) months’ prior notice for the
placement of advertising. The amount of the Advertising Commitment shall not be deducted from royalties owed Licensor or from the Minimum Royalty Guarantee; applied to any deductions permitted under Section 5(a)(ii). 
 (e) Business Planning Commitment. Licensee shall proactively and openly share

  

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product plans, business plans, sales mix and sales forecast plans, customer plans and marketing and promotional plans in an on-going manner throughout the Term. 
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	14.	MINIMUM PRODUCT LINE DEVELOPMENT AND DISTRIBUTION COMMITMENTS. 

 (a) LICENSOR MOVIE LINES: 
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 (b) LICENSOR ANIMATED TV SERIES LINES: 
 ************************************************************************** 
 ************************************************************************** 
  

	 	(c) CLASSIC SPIDER-MAN BRAND LINES: 

 ************************************************************************** 
 ************************************************************************** 
 (d) MARVEL MULTI-CHARACTER BRANDED LINES:

 ************************************************************************** 
 ************************************************************************** 
 (e)
MEGA PROPERTY QUALIFYING THEATRICAL RELEASES LINES 
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 ************************************************************************** 
 ************************************************************************** 
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************************************************************** 
  

	15.	DISPUTE RESOLUTION/TERMINATION 

 (a) In the event of failure by Licensee to timely pay the royalty payments and/or the Minimum Royalty Guarantee payments in accordance with Sections 1 and 5 of this Agreement, Licensor shall have the right to terminate this license fifteen
(15) days after receipt by Licensee of notice in writing, and such notice of termination shall become effective unless, within such fifteen (15) day period, Licensee shall completely remedy the breach and furnish the required payments.

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 ************************************************************************************************************

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 (d) Change in Character of Licensee. It is understood that the grant of the license herein by Licensor is personal to Licensee.
Licensor may terminate this Agreement if: (i) there is a transfer, in a single transaction or in a series of related transactions, of fifty percent (50%) or more of (a) the then outstanding shares of common capital stock of Licensee
or its “Parent” (as defined below) or (b) the combined voting power of the then outstanding voting securities of the Licensee or its Parent entitled to vote generally in the election of directors; (ii) there is a transfer, in a
single transaction or a series of related transactions, of all or substantially all of the assets of Licensee or its Parent; or (iii) there is a merger or consolidation of Licensee with another person or entity, in which the shareholders of

  

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Licensee immediately prior to the merger or consolidation cease to control at least fifty percent (50%) of the outstanding shares of the resulting entity (in each instance, a “Change
of Control”). If Licensor has reason to believe that a Change of Control has occurred, Licensor may request, and Licensee shall provide, a statement certified by Licensee’s principal executive officer stating whether or not a Change of
Control has occurred and addressing any other particulars reasonably requested by Licensor. If Licensee has reason to believe that such a Change of Control has occurred or if Licensee or its Parent publicly proposes to enter into such a Change of
Control transaction, Licensee shall give written notice thereof to Licensor. Within fourteen (14) days after receiving such notice, Licensor shall give Licensee written notice stating whether it approves or disapproves any such Change of
Control or proposed Change of Control and, in the case of its disapproval thereof, whether it exercises its right of termination hereunder, if the Change of Control has already occurred, or will exercise its rights of termination if the proposed
Change of Control is subsequently made; provided, however, that Licensor’s approval of a Change in Control shall not be unreasonably withheld. The foregoing shall not limit in any way the right of Licensor, under Section 19(f), to
disapprove assignments and other transfers of this Agreement and the rights hereunder. For purposes of this Section 15(c), Licensee’s “Parent” shall mean any person or entity in control of Licensee directly or indirectly
through one or more intermediaries. 
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 (e)
New Service Agreement. In the event that the New Service Agreement terminates, this Agreement shall automatically terminate. In the event that this Agreement terminates, the New Service Agreement shall automatically terminate. 
  

	16.	OBLIGATIONS ON EXPIRATION OR TERMINATION 

 (a) Reversion of Right. Promptly upon the expiration or termination of this license for any cause whatsoever, all the rights granted to Licensee hereunder shall cease and revert to Licensor, who
shall be free to license others to use any or all of the rights granted herein effective on and after such date of expiration or termination, subject to Licensee’s sell-off rights. To this end, Licensee will be deemed to have automatically
assigned to Licensor upon such expiration or termination, all copyrights, trademark and service mark rights, equities, good will, titles and other rights in or to the Property and all adaptations, compilations, modifications, translations and
versions thereof, (except for Licensee’s patents, trademarks, copyrights or other intellectual property contained in the Licensed Articles that are separate or separable from the Property, and all adaptations, compilations, modifications,
translations and versions thereof ). Each party shall upon the expiration or termination of this license execute any instruments requested by the other party to accomplish or confirm the foregoing. Any such assignment shall be without other
consideration than the mutual covenants and considerations of this Agreement. In addition, upon and after such expiration or termination of this license for whatever reasons, Licensee will, except as specifically provided in Section 16(e)
hereof, forthwith refrain from further use of the Property or Licensor’s name, or any further reference to any of them, direct or indirect, or of anything deemed by Licensor to be similar to the Property. 
 (b) Return of Artwork. Upon termination or expiration of this Agreement for any reason whatsoever, Licensee shall return to
Licensor’s New York Office, sent to the attention of Senior Contracts Administrator, all artwork or, at Licensee’s option, furnish to Licensor an affidavit attesting to the destruction of said artwork Property, and all adaptations,
compilations, modifications, translations

  

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and versions thereof, including but not limited to all reproductions and all artwork specially produced for Licensee by Licensor or others, whether or not paid for by Licensee. 
 (c) No Release. (i) The termination or expiration of this license shall not release any party of any obligation to pay any monies
that are owed or are owing to Licensor or arose out of any transaction prior to the date of termination or expiration, and in the event of a proper termination by Licensor in accordance with the Dispute Resolution process, all royalties on sales or
shipments theretofore made shall become immediately due and payable with no part of the Minimum Royalty Guarantee being repayable except as set forth herein, and any balances of the Minimum Royalty Guarantee or any other payments owed or owing to
Licensor shall be immediately due and payable except as set forth herein. Notwithstanding the foregoing, nothing in this section shall mitigate the effects of the term extensions described in Section 3(c) hereof, 
 ************************************************************************************************************ 
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 (iii) In the event of a full termination by either party of this Agreement pursuant to Section 15(b)(ii) above or Section 19(c)
below, Licensee shall have no obligation to pay any further advances or minimum royalty guarantee payments scheduled to occur following such termination. 
 (iv) The parties acknowledge that in no event shall Licensee have any obligation whatsoever to pay to Licensor any portion of the Marketing Commitment which has not been expended by Licensee or its
Affiliates as of the date of termination or expiration of this License. 
 (d) Inventory. Fifteen (15) days before
the expiration of this license and, in the event of its termination, forty five (45) days after receipt of notice of termination or the happening of the event which

  

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terminates this license where no notice is required, a statement executed by an officer of Licensee certifying the number and description of the Licensed Articles in inventory or in process shall
be furnished by Licensee to Licensor’s New York Office to the attention of Senior Contracts Administrator. Licensor shall have the right to take a physical inventory to ascertain or verify such inventory and statement, and Licensee’s
failure to furnish such statement or the refusal by Licensee to submit to such physical inventory shall forfeit Licensee’s right to dispose of such Licensed Articles as provided in Section 16(e) hereof. 
 (e) Disposal. After expiration of this license, for the Post-Expiration Disposal Period specified in Section 1(j), Licensee may,
except as otherwise provided in this Agreement, dispose of, on a nonexclusive basis, and in compliance with all of the terms and conditions hereof, including Section 13, those Licensed Articles which are on hand or in process at expiration,
provided royalties with respect to such Calendar Period are paid and Royalty Reports are furnished for such Calendar Period in accordance with Section 5 hereof. Royalties on Net Sales during the Disposal Period may be applied against any
unearned balance of the Minimum Royalty Guarantee. Licensee specifically acknowledges and agrees that it shall carefully plan production, sales and inventory levels in the final year of the Term so as to leave minimal product and inventory levels of
Licensed Articles within the trade and within its own warehouses or those of distributors at the end of the Term. 
 ************************************************************************************************************ 
 ************************************************************************************************************ 
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 In the event that
Licensee sells or exploits the Licensed Articles after the Post Expiration Disposal Period or in excess of the permitted amount, the royalty due Licensor on such sales shall be the Net Sales. Notwithstanding anything to the contrary herein, Licensee
shall not sell or dispose of any Licensed Articles after termination of this Agreement pursuant to Section 15. 
 (f)
Undisposed Licensed Articles. Upon expiration or termination of this license, or upon the expiration of the period for disposal where permitted under the previous subsection, Licensee shall destroy and furnish to Licensor an affidavit
attesting to the destruction of all remaining Licensed Articles, if any, and all tags, labels, packaging, advertising, promotional and display materials therefore, and elements of the Property and all adaptations, compilations, modifications,
translations and versions thereof in all molds, plates, engravings and/or mechanicals used to make any of the Licensed Articles or any of the aforesaid materials. 
  

	17.	REMEDIES 

 (a) No
remedies provided for herein shall limit any other remedies available under this Agreement or otherwise, provided that the Dispute Resolution process is complied with wherever applicable. 
 (b) Use After Termination, etc. Licensee acknowledges that its failure to cease the use of the Property or to cease sale or
distribution of the Licensed Articles at the termination or expiration of this license, except as expressly provided herein, will result in immediate and irreparable damage to Licensor and to the rights of any subsequent licensee. Licensee
acknowledges and admits that there is no adequate remedy at law for such failure, and Licensee agrees that in the event of such failure, Licensor may be entitled to injunctive relief and such other and further relief as any court with jurisdiction
may deem just and proper. 
  

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 (c) Interest, Damages and Cost. In the event Licensee shall default in the payment of
monies required to be paid to Licensor hereunder, in addition to any remedies which Licensor may have at law or in equity to recover any such monies as may be due and owing, Licensor shall be entitled to receive from Licensee interest on such monies
as may be owing from the date of default at a rate equal to three percent (3%) above the prime lending rate charged by Licensor’s bank in New York on the date of default. 
  

	18.	SUBCONTRACT MANUFACTURE 

 Licensee may utilize a third party subcontract manufacturer approved in writing by Licensor in connection with the manufacture and production of the Licensed Articles, provided that such subcontractor shall execute a letter in the form of
Exhibit C attached hereto and by this reference made a part hereof. In such event, Licensee shall remain primarily obligated under all of the provisions of this Agreement. In no event shall any such subcontract manufacturer Agreement include the
right to grant any further sublicenses. If any manufacturer utilizes the Property for any unauthorized purposes Licensee shall cooperate fully in bringing such utilization to an immediate halt. If, by reason of Licensee not having supplied Exhibit
C, Licensor makes any representation or takes any action and Licensor is therefore subject to any penalty or expense, Licensee shall fully compensate Licensor for any cost or expense Licensor may sustain. 
  

	19.	GENERAL 

 (a)
Integrity of Agreement. This Agreement and the New Service Agreement contain and embodies the entire Agreement and understanding of the parties concerning the subject matter hereof. No warranties, representations, understandings, inducements,
promises, guarantees, agreements or conditions, express or implied, not expressly contained herein, have been made or shall be enforceable by either party concerning the subject matter hereof or any relationship between the parties. Nothing
contained herein shall be deemed an express or implied warranty on the part of Licensor that efforts to gain copyright, trademark or service mark registration will be successful, or that the Property has or will in the future have any commercial
value, and it is understood that no liability shall attach to Licensor for any failure to secure such registration, nor shall there be any modification hereof for such reason. 
 (b) Relationship Between the Parties. The relationship between the parties hereto is that of licensor and licensee, and this
Agreement is not to be construed as creating a partnership, joint venture, master-servant, principal-agent, or other relationship for any purpose whatsoever. Except as may be expressly provided herein, neither party may be held for the acts either
of omission or commission of the other party, and neither party is authorized to or has the power to obligate or bind the other party by contract, Agreement, warranty, representation or otherwise in any manner whatsoever. 
 (c) Force Majeure. Licensee and Licensor shall be released from their obligations hereunder and this license shall terminate with
respect to such territory, field or part thereof as to which governmental regulations or other causes arising out of a state of national emergency render performance impossible for a period of more than ninety (90) days, and provided that one
party informs the other in writing of such causes and its desire to be released. In such event, all royalties on sales theretofore made with respect to such territory, field or part shall become immediately due and payable to Licensor. In the event
of such a termination or partial termination, Licensee shall be entitled to a refund of all or a portion of its guarantee payments in the manner described above in Section 16(c)(ii) 
  

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 (d) Mailing Addresses. All notices, reports and statements to be given and all
payments to be made hereunder, shall be given or made by hand delivery, email, first class, Registered or Certified mail, or Federal Express or any overnight delivery service providing notice of receipt at the address of Licensee set forth above
with notice to Licensor to the attention of Licensor’s legal department to Marvel Characters B.V. and (if applicable) Spider-Man Merchandising L.P., 417 Fifth Avenue, Mezzanine, New York, NY 10016, unless notification of a change of address is
given in writing. The date of applicable tracking information (tracking information, post-mark, email confirmations) shall be deemed the date the notice, report or statement is given. The mailing of a notice by Registered or Certified mail shall
constitute notice hereunder even in the event of refusal to accept by addressee. 
 (e) Survival and Separability.
Notwithstanding anything to the contrary herein, all provisions hereof are hereby limited to the extent mandated by any applicable law or decisions. If any one or more paragraphs, clauses or other portions hereof should ever be determined to be
illegal, invalid or otherwise unenforceable by a court of competent jurisdiction or be illegal, invalid or invalidated or unenforceable within any jurisdiction by reason of any existing law or statute, then to that extent and within the jurisdiction
in which it is illegal, invalid or unenforceable it shall be limited, construed or severed and deleted herefrom, and the remaining extent and/or remaining portions hereof shall survive, remain in full force and effect and continue to be binding and
shall not be affected except insofar as may be necessary to make sense hereof, and shall be interpreted to give effect to the intention of the parties insofar as that is possible. In no event shall this Agreement be construed as requiring Licensee
or Licensor to commit any unlawful act or acts whatsoever. All payments hereunder shall be subject to any and all applicable withholding taxes. 
 (f) Assignment or Sublicense. This Agreement and the license rights granted hereunder are personal to Licensee and shall not in any manner whatsoever be assigned, sublicensed, hypothecated,
mortgaged, divided or otherwise encumbered by Licensee to or with any other person or entity other than to Licensee’s wholly owned subsidiaries and (to the extent necessary to allow them to act as distributors) Licensee’s distributors
without Licensor’s prior written consent which it may withhold in its sole discretion but no such assignment by Licensee shall release Licensee from any of its obligations or liabilities hereunder. This Agreement and the provisions hereof shall
be binding at all times upon and inure to the benefit of the parties hereto, their successors and permitted assigns. Any attempted assignment in violation of the provisions hereof shall be void ab initio and the assignee shall obtain no
rights by reason thereof. 
 (g) Construction and Jurisdiction. This Agreement shall be construed and interpreted in
accordance with the laws of the State of New York applying to contracts fully executed and performed in New York. With respect to any provisions of this Agreement that provide for relief in court, each party agrees to submit to exclusive
jurisdiction in the courts (both Federal and State) of New York State for any action brought by Licensor or Licensee hereunder, to bring no action in any other court, and each party further agrees to accept service of process by mail at its above
written address. The titles and headings of the sections, subsections and other divisions of this Agreement are inserted merely for convenience and identification and shall not be used or relied upon in connection with the construction or
interpretation of this Agreement. 
 (h) No Waiver. None of the provisions hereof shall be deemed to be waived or
modified, nor shall they be renewed, extended, altered, changed or modified in any respect except by an express agreement in writing duly executed by the party against whom enforcement of such waiver, modification, etc. is sought. The failure of
either party hereto to object to the failure on the part of the other party to

  

 38 

 
perform any of the terms, provisions or conditions hereof or to exercise any option herein given or to require performance on the part of the other party of any term, provision or condition
hereof, or any delay in doing so, or any custom or practice of the parties at variance therewith, shall not constitute a waiver or modification hereof or of any subsequent breach or default of the same or a different nature, nor affect the validity
of any part hereof, nor the right of either party thereafter to enforce the same, nor constitute a novation or laches. 
 (i)
Ethics. Each party agrees that no part of the consideration paid pursuant to this Agreement shall be offered, paid or payable, directly or indirectly, to any governmental official, political party or official thereof, or any candidate for
political office, for the purpose of influencing any act or decision of such person or party or inducing such person or party to use his or its influence to affect or influence any act or decision of any national, state or local government or
instrumentality thereof. For the purposes of this Section (i), the term “governmental official” shall include any officer or employee of a national, state or local government, or any department, agency or instrumentality thereof, or any
person acting in an official capacity of or on behalf of such government or department, agency or instrumentality. 
 (j)
Prevailing Languages. In the event of any conflict of interpretation between this Agreement and any translation, the original English version shall prevail. 
 (k) Code of Conduct. Licensee agrees, on its own behalf and on behalf of any suppliers/third parties/manufacturers (“Third Party Vendors”) (i) it shall, at its cost, enroll
in, and comply with, all requirements of the Customs-Trade Partnership Against Terrorism (“C-TPAT”) and (ii) wherever located, it shall ensure that no child labor will be used in the performance of this Agreement
whatsoever. For this purpose, a “child” shall refer to any person younger than 15 (or 14 where local law allows) or, if higher, the local legal minimum age for employment or the age for completing compulsory education. Third Party Vendors
that are young persons or that are employing young persons who do not fall within the definition of “children” will also comply with any laws and regulations applicable to such persons. Additionally, all employees will be provided with a
safe and healthy workplace environment, and all employees will work on a voluntary basis, and shall not be subject to physical or mental punishment of any kind. Further, Licensee and all Third Party Vendors shall comply with all local laws,
including but not limited to, applicable wage laws and fair employment practices including the practice of non-discrimination on the basis of race, religion, national origin, political affiliation, sexual preference, or gender. Licensee and all
Third Party Vendors will, at a minimum, comply with all applicable wage and hour laws and regulations, including those relating to minimum wages, overtime, maximum hours, piece rates and other elements of compensation, and provide legally mandated
benefits. Licensee and Third Party Vendors will further comply with all applicable environmental laws and regulations. Licensee and Third Party Vendors shall submit to reasonable on-site inspections conducted by Licensor or its designated
representative, to ensure compliance with all of the provisions of this Section. 
 (l) Confidentiality. This Agreement
and the contents hereof constitute a confidential business relationship between the parties. Each party acknowledges that significant irreparable damage could be done to the other party should the terms of this Agreement as well as any technical,
financial, customer, personnel, and/or other business information in written, graphic, oral, visual or other tangible or intangible forms, financial statements and other financial data, specifications, patent applications, records, data, computer
programs, drawings, schematics, know-how, notes, models, reports, and samples of a party (together, “Confidential Information”) become public knowledge. Each party agrees that it will not reveal the terms of this Agreement or any
Confidential Information to

  

 39 

 
any third party (excluding employees, agents, attorneys, accountants and others to whom Licensor or Licensee has a legal obligation to disclose and, provided that the other party is given, to the
extent reasonably practicable, an opportunity to review and comment, excluding other legally required disclosures), and each party shall exercise reasonable precautions to ensure that it or any of the foregoing persons shall not allow the terms of
this Agreement or any Confidential Information to become public knowledge. If either party is directed by legal process to disclose such information to any third party, each party shall notify the other party at least fifteen (15) days (or, if
less than 15 days, as much time as is possible under the time constraints imposed by the applicable legal process) prior to disclosing the information. Additionally, the parties agree that Confidential Information shall not be used by the receiving
party for any purpose other than as expressly provided for herein. 
  

	20.	N/A 

 [SIGNATURE PAGE
FOLLOWS] 
  

 40 

 IN WITNESS WHEREOF, and intending to be legally bound thereby the parties hereto have caused this instrument
to be duly executed as of the day and year first above written. 
  

			
	MARVEL CHARACTERS B.V.
		
	By:	 	/s/ Isaac Perlmutter
	Name:	 	Isaac Perlmutter
	Title:	 	Authorized Representative
	Date:	 	February 17, 2009

  

			
	SPIDER-MAN MERCHANDISING L.P.
		
	By:	 	Marvel Characters, Inc. as General Partner
		
	By:	 	/s/ Isaac Perlmutter
	Name:	 	Isaac Perlmutter
	Title:	 	Chief Executive Officer
	Date:	 	February 17, 2009

  

			
	
	HASBRO, INC.
		
	By:	 	/s/ Brian Goldner
	Name:	 	Brian Goldner
	Title:	 	Chief Executive Officer
	Date:	 	February 17, 2009

  

			
	HASBRO, INC.
		
	By:	 	/s/ David D.R. Hargreaves
	Name:	 	David D.R. Hargreaves
	Title:	 	Chief Operating Officer and Chief Financial Officer
	Date:	 	February 17, 2009

  

 41 

 Attachments: 
  

	 	•	 	 Exhibit A: Licensee’s Royalty Report Form 

  

	 	•	 	 Exhibit B: Work Made For Hire Letter Form 

  

	 	•	 	 Exhibit C: Subcontract Manufacturer Letter Form 

  

	 	•	 	 Exhibit D: Product and Packaging Approval Process and Stages/Policy and Procedures 

  

	 	•	 	 Exhibit E: Licensing Product Approval Form 

 EXHIBIT A 
 LICENSEE TO PROVIDE STANDARD ROYALTY REPORT 

 Exhibit B 
 D09001 
 AGREEMENT made this __ day of ____, 200___, by and between _____________ residing
at_______________________________(herein “Supplier”) and _________________________________ residing at _____________________________________________ (herein “Licensee”). 
 Licensee has been granted the rights by Marvel Characters B.V. (herein “Marvel”) and Spider-Man Merchandising L.P. (herein
“LP”) to produce and/or market certain merchandise based upon and utilizing literary and/or artistic properties owned or controlled by Marvel and LP. Licensee wishes to order or commission either written material or artwork from
Supplier as a work made for hire pursuant to the Copyright Act of 1976 for use by Licensee, on behalf of Marvel and LP, including but no limited to use as a contribution to a collective work. Marvel and LP has informed Licensee that Marvel and LP
will permit the preparation of such written material or artwork only if it is commissioned on a work made for hire basis, with a waiver of moral rights therein. 
 THEREFORE, the parties agree as follows: 
 In consideration of Licensee’s
commissioning and ordering from Supplier written material or artwork and paying therefore on behalf of Licensee, Marvel and LP, Supplier acknowledges, agrees and confirms that any and all work, writing, art work material or services, including
without limitation, any writings, artwork, drawings, stories, scripts, character designs, plots, pencils, templates, photographic, graphic or computer-generated material or the like already produced or to be produced by Supplier for Licensee on
behalf of Licensee, Marvel and LP involving, based upon, utilizing, derived from, incorporating or referring to any properties, characters or materials owned by Marvel and LP, have been and will be specially ordered or commissioned by Licensee, on
behalf of Licensee, Marvel and LP, for use as a work made for hire, including, but not limited to, use as a contribution to a collective work (hereinafter, the “Work”); that the Work was produced under the supervision and control
and pursuant to the direction of Licensee on behalf of Licensee, Marvel and LP; and that as such, the Work was and is expressly agreed to be considered a work made for hire pursuant to all copyright laws applicable to the work, and Supplier shall
waive any moral rights therein. If, for any reason, the Work produced by Supplier hereunder shall not be deemed a “work made for hire”, Supplier hereby also assigns all such rights to Marvel and LP to the extent such Work embodies the
Property and to Licensee in all other respects. Supplier hereby waives any and all rights, including any moral rights, in and to the Works which Supplier may acquire pursuant to this Agreement or by operation of law. For purposes of Marvel’s
and LP’s rights hereunder, the term “Work” shall not include any elements that are separate or separable from properties, characters, or materials owned by Marvel and LP and all adaptations,

 
compilations, modifications, translations and versions thereof and such separate or separable elements shall be deemed owned by Licensee. 
 Supplier expressly grants to Licensee, Marvel and LP forever all worldwide rights of any kind and nature in and to the Work and agrees that
as between Supplier, Licensee and Marvel and LP, Marvel and LP are the sole and exclusive copyright proprietor thereof throughout the world to the extent such Work embodies the Property and to Licensee in all other respects. Supplier perpetually
agrees (i) not to contest Licensee, Marvel and LP’s exclusive, complete and unrestricted ownership in and to the Work, (ii) not to claim any ownership in the Work, (iii) not to use or exploit or claim the right to use or exploit
the Work in any manner, and (iv) not to object to any exploitation or use of the Work or to any changes, modifications, or revisions to the Work made by or on behalf of Licensee, Marvel and LP. Supplier hereby waives any moral rights of any
kind or nature in the Work. 
 Supplier agrees and acknowledges that Licensee, Marvel and LP shall have the right, but not the
obligation, to use Supplier’s name in connection with the Work and/or any rights granted hereunder, without compensation to Supplier. However, Marvel and LP and Licensee shall not present Supplier, in Marvel and LP and Licensee’s judgment,
as endorsing any product or service, or use Supplier’s name on any merchandise that is not directly connected with the Work without Supplier’s prior written consent. 
 This Agreement shall be binding upon and inure to the benefit of the parties hereto and to the benefit of Licensee, Marvel and LP, and their
respective heirs, successors, administrators and assigns. 
 In WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first above written. 
  

			
	 Supplier:
	  	Licensee:
	 By: _______________________
	  	By: _______________________
	 Name: _______________________
	  	Name: _______________________
	 Title: _______________________
	  	Title: _______________________
	 Date: _______________________
	  	Date: _______________________

 Exhibit C 
 D09001 
 Dated  
 Marvel Characters B.V. and Spider-Man Merchandising L.P. 
 417 Fifth Avenue, Mezzanine 

New York, NY 10016 
 This letter
will serve as notice to you that pursuant to Section 18 of the License Agreement dated                      between you and
                    , we have been engaged as the subcontract manufacturer for
                     in connection with the manufacture of the Licensed Articles defined in the aforesaid License Agreement. We hereby
acknowledge that we have received an appropriately redacted copy and are cognizant of the terms and conditions set forth in said License Agreement and hereby agree to be bound by those provisions of said License Agreement which are applicable to our
function as manufacturer of the Licensed Articles, including but not limited to the right of Marvel and Spider-Man Merchandising L.P., pursuant to Section 5(e) of the License Agreement, to examine our Books of Account Records with respect to
the manufacture of the Licensed Articles. It is understood that this engagement as subcontract manufacturer is on a royalty-free basis, and that we have no right to sublicense or subcontract thereunder. 
 We understand that our engagement as the subcontract manufacturer for is subject to your approval. We request, therefore, that you
sign in the space below, thereby showing your acceptance of our engagement as aforesaid. 
 Very truly yours, 
  

			
	 
		
		  	(Manufacturer)
		
	By:	  	 
		  	
	Name:	  	 
		  	
	Title:	  	 
		  	
	Date:	  	 

 Accepted: 
 MARVEL CHARACTERS B.V. 
  

			
	By:	  	 
		  	
	Name:	  	 
		  	
	Title:	  	 
		  	
	Date:	  	 

 SPIDER-MAN MERCHANDISING L.P. 

 By: Marvel Characters B.V. as General Partner 
  

			
	By:	  	 
		  	
	Name:	  	 
		  	
	Title:	  	 
		  	
	Date:Form of 2008 Incentive Award Plan Stock Option Grant Notice Stock Option Agrmt

 Exhibit 10.1 
 VERSO PAPER CORP. 
 2008 INCENTIVE AWARD PLAN 
 STOCK OPTION GRANT NOTICE 
 AND 

 STOCK OPTION AGREEMENT 
 Verso Paper Corp., a Delaware corporation (the “Company”), pursuant to its 2008 Incentive Award Plan, as amended (the “Plan”), hereby grants to the individual listed below (“Participant”),
an option to purchase the number of shares of the Company’s common stock, par value $.01 per share (“Common Stock”), set forth below (the “Option”). The Option is subject to all of the terms and conditions set
forth herein and in the Stock Option Agreement attached hereto as Exhibit A (the “Stock Option Agreement”) and the Plan, which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the
Plan shall have the same defined meanings in this Stock Option Grant Notice (the “Grant Notice”) and the Stock Option Agreement. 
 Participant:
                                        

 Grant Date:
                                        

 Total Number of Shares Subject to Option:              shares 

Exercise Price per Share: $             
 Total Exercise Price: $                     

Expiration Date:
                             
 Type of Option:         ̈    Incentive Stock
Option            x    Non-Qualified Stock Option 
  

			
	Vesting Schedule:	  	Subject to the terms of the Stock Option Agreement (including, without limitation, all exhibits thereto), the Option shall vest and become exercisable with respect to  1/3 of the shares of Common Stock covered thereby on each of the first three
anniversaries of the Grant Date, provided in each case that Participant is an Eligible Individual (as defined in the Plan) at all times during the period beginning on the Grant Date and ending on the applicable vesting date.

 [Signatures are on next page.] 

 By his or her signature, Participant agrees to be bound by the terms and conditions of the Plan, the
Stock Option Agreement and this Grant Notice. Participant has reviewed the Stock Option Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and
fully understands all provisions of this Grant Notice, the Stock Option Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under
the Plan or relating to the Option. 
  

									
	VERSO PAPER CORP.	 		 	PARTICIPANT
					
	By:	  	  
	 		 	Signature:	 	  

	Print Name:	  	  
	 		 	Print Name:	 	  

	Title:	  	  
	 		 		 	
					
	Address:	  	6775 Lenox Center Court	 		 	Address:	 	  

		  	Suite 400	 		 		 	  

		  	Memphis, TN 38115-4436	 		 		 	

  

 2 

 EXHIBIT A 
 TO 
 STOCK OPTION GRANT NOTICE 
 STOCK OPTION AGREEMENT 
 Pursuant to the Stock Option Grant Notice (the
“Grant Notice”) to which this Stock Option Agreement (this “Agreement”) is attached, Verso Paper Corp., a Delaware corporation (the “Company”), has granted to Participant an option (the
“Option”) under the Company’s 2008 Incentive Award Plan, as amended (the “Plan”), to purchase the number of shares of Common Stock indicated in the Grant Notice. 
 ARTICLE I. 
 GENERAL 

1.1 Defined Terms. Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context
clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice. 
 (a) “Administrator” shall mean the entity that conducts the general administration of the Plan as provided in Article 12 of the Plan. With reference to the duties of the Committee under the Plan which have been delegated to
one or more persons pursuant to Section 12.6 of the Plan, or as to which the Board has assumed, the term “Administrator” shall refer to such person(s) unless the Committee or the Board has revoked such delegation or the Board has
terminated the assumption of such duties. 
 (b) “Cause”, when used in connection with a Termination of Service of a
Participant, means a Termination of Service of Participant by the Company or any Subsidiary thereof due to Participant’s: 
 (i)
material breach of his or her obligations under any agreement with the Company or any Subsidiary thereof, which he or she fails to cure within 15 days after receipt of a written notice of such breach (to the extent that, in the reasonable judgment
of the Committee, such breach can be cured by Participant); 
 (ii) willful failure to perform his or her material duties, which he or she
fails to cure within 15 days after receipt of a written notice of such failure to perform (to the extent that, in the reasonable judgment of the Committee, such failure to perform can be cured by Participant); 
 (iii) material breach of the Company’s or any of its Subsidiaries’ written policies or procedures, which he or she fails to cure within 15
days after receipt of a written notice of such breach (to the extent that, in the reasonable judgment of the Committee, such breach can be cured by Participant); 
 (iv) willful misconduct which causes material harm to the Company or any Subsidiary thereof or their respective business reputations, which he or she fails to cure within 15 days after receipt of a written notice of
such misconduct (to the extent that, in the reasonable judgment of the Committee, such misconduct can be cured by Participant); 
 (v)
commission of a felony or a crime of moral turpitude; or 
  

 A-1 

 (vi) willful commission of a material act of dishonesty involving the Company or any Subsidiary thereof.

 (c) “Involuntary Termination” shall mean a Participant’s Termination of Service due to: 
 (i) a material reduction in Participant’s authorities or duties (not including a change in title, provided that such authorities and duties are
similar and are performed in the same functional area) following a Change in Control, as compared to Participant’s authorities and duties with the Company or its Subsidiaries immediately prior to such Change in Control; 
 (ii) any material reduction in Participant’s annual base salary in effect immediately prior to a Change in Control, except for any broad based
salary reduction affecting employees of the Company who are similarly situated to Participant; or 
 (iii) a material reduction in the
overall value of Participant’s target bonus, profit sharing and other incentive compensation opportunities in effect immediately prior to a Change in Control, except for any broad based bonus, profit sharing, or other incentive compensation
reduction affecting employees of the Company who are similarly situated to Participant. 
 (d) “Retirement” shall mean a
Participant’s Termination of Service due to Participant’s resignation after (1) attaining at least age 50 with at least 15 years of continuous service with Company or its Subsidiaries, (2) attaining at least age 55 with at least
ten years of continuous service with the Company or its Subsidiaries, or (3) attaining at least age 60 with at least five years of continuous service with the Company or its Subsidiaries. 
 (e) “Termination of Service” shall mean: 
 (i) As to a Consultant, the time when the engagement of a Participant as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without Cause, including, without limitation, by resignation,
discharge, death or retirement, but excluding terminations where the Consultant simultaneously commences or remains in employment or service with the Company or any Subsidiary. 
 (ii) As to a Non-Employee Director, the time when a Participant who is a Non-Employee Director ceases to be a Director for any reason, including,
without limitation, a termination by resignation, removal or failure to be elected, death or retirement, but excluding terminations where the Participant simultaneously commences or remains in employment or service with the Company or any
Subsidiary. 
 (iii) As to an Employee, the time when the employee-employer relationship between a Participant and the Company or any
Subsidiary is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement, or an Involuntary Termination, but excluding terminations where the Participant simultaneously
commences or remains in employment or service with the Company or any Subsidiary. 
 The Administrator, in its sole discretion, shall determine the effect of
all matters and questions relating to Terminations of Service, including, without limitation, the question of whether a Termination of Service resulted from a discharge for cause and all questions of whether particular leaves of absence constitute a
Termination of Service; provided, however, that with respect to Incentive Stock Options, unless the Administrator otherwise provides in the terms of the Award Agreement or otherwise, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer 

  

 A-2 

 
relationship shall constitute a Termination of Service only if, and to the extent that, such leave of absence, change in status or other change interrupts
employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Participant’s employee-employer relationship or consultancy relations
shall be deemed to be terminated in the event that the Subsidiary employing or contracting with such Participant ceases to remain a Subsidiary following any merger, sale of stock or other corporate transaction or event (including, without
limitation, a spin-off). 
 1.2 Incorporation of Terms of Plan. The Option is subject to the terms and conditions of the Plan which
are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control. 
 ARTICLE II. 
 GRANT OF OPTION 
 2.1 Consideration to the Company. In consideration of the grant of the Option by the Company, Participant agrees to render faithful and efficient services to the Company or any Subsidiary. Nothing in the Plan
or this Agreement shall confer upon Participant any right to continue in the employ or service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby
expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and
Participant. 
 ARTICLE III. 
 PERIOD OF EXERCISABILITY 
 3.1 Commencement of Exercisability. 
 (a) Subject to Sections 3.1(b), 3.1(c) and 3.3, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the
Grant Notice. The number of shares subject to vesting on each vesting date shall be rounded down to the nearest whole number, provided that on the final vesting date all shares that have not been eligible to become vested on any prior vesting
date(s) because of the foregoing rounding convention shall be subject to vesting on the final vesting date. 
 (b) Any portion of the Option
which remains unvested at the date of Participant’s Termination of Service shall thereupon be forfeited, except as may otherwise be provided herein or by action of the Administrator following the Grant Date. 
 (c) Notwithstanding Sections 3.1(a) and 3.1(b): 
 (i) Unless otherwise provided by the Administrator in accordance with the terms of the Plan (including, without limitation, Section 13.2(b) of the Plan), and except as otherwise provided below, in the event of a Change in Control, the
Company shall, in accordance with Section 13.2(b)(ii) of the Plan, require that the Option be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or that the Option be substituted for by similar options, rights
or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices, and the Option shall continue to be eligible to become vested and
exercisable in such amounts and at such times as are set forth in the Grant Notice, subject to the foregoing adjustments. 
  

 A-3 

 (ii) In the event of Participant’s death or Disability, or in the event of Participant’s
Termination of Service by the Company without Cause on or prior to the consummation of a Change in Control, the Option shall become vested and exercisable with respect to a pro-rata percentage of the Option (determined on a quarterly basis and based
on the number of completed quarters that have elapsed from the most recent vesting date through the date of Termination of Service). 
 (iii) In the event of Participant’s Termination of Service within six months immediately following a Change in Control (A) by the Company without Cause or (B) by Participant by reason of an Involuntary Termination, the Option
shall become vested and exercisable in full. 
 3.2 Duration of Exercisability. The installments provided for in the vesting schedule
set forth in the Grant Notice are cumulative. Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and exercisable until it becomes unexercisable under
Section 3.3. 
 3.3 Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur of the
following events: 
 (a) The expiration of seven years from the Grant Date; 
 (b) If the Option is designated as an Incentive Stock Option and Participant owned (within the meaning of Section 424(d) of the Code), at the time
the Option was granted, more than 10% of the total combined voting power of all classes of stock of the Company or any “subsidiary corporation” of the Company or any “parent corporation” of the Company (each within the meaning of
Section 424 of the Code), the expiration of five years from the Grant Date; 
 (c) The expiration of three months from the date of
Participant’s Termination of Service for any reason other than Participant’s Termination of Service by reason of Participant’s death, Disability or Retirement; 
 (d) The expiration of one year from the date of Participant’s Termination of Service by reason of Participant’s death or Disability; or

 (e) In the case of Participant’s Retirement, the date of expiration set forth in Section 3.3(a). 
 3.4 Special Tax Consequences. Participant acknowledges that, to the extent that the aggregate Fair Market Value (determined as of the time the
Option is granted) of all shares of Common Stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) under the Plan, and under all
other plans of the Company and any Subsidiary or parent corporation thereof (as defined in Section 424(e) of the Code), including the Option, are exercisable for the first time by Participant in any calendar year exceeds $100,000, the Option
and such other options shall be Non-Qualified Stock Options to the extent necessary to comply with the limitations imposed by Section 422(d) of the Code. Participant further acknowledges that the rule set forth in the preceding sentence shall
be applied by taking the Option and other “incentive stock options” into account in the order in which they were granted, as determined under Section 422(d) of the Code and the Treasury Regulations thereunder. Participant further
acknowledges that an Option that is an Incentive Stock Option that is exercised more than three months after Participant’s Termination of Service, other than by reason of death or Disability, will be taxed as a non-qualified stock option.

  

 A-4 

 ARTICLE IV. 
 EXERCISE OF OPTION 
 4.1 Person Eligible to Exercise. Subject to Section 11.3(a)(iii) of
the Plan, and except as provided in Section 5.2(b), during the lifetime of Participant, only Participant may exercise the Option or any portion thereof. After the death of Participant, any exercisable portion of the Option may, prior to the
time when the Option becomes unexercisable under Section 3.3, be exercised by Participant’s personal representative or by any person empowered to do so under the deceased Participant’s will or under the then applicable laws of descent
and distribution. 
 4.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may
be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3. 
 4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary of the Company (or any third-party administrator or other person or entity designated by the Company) of all
of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 3.3: 
 (a) A notice of
exercise in the form attached hereto as Exhibit B (or such other form as may be specified by the Administrator from time to time) stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable rules
established by the Administrator; 
 (b) The receipt by the Company of full payment for the shares of Common Stock with respect to which the
Option or portion thereof is exercised, including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under Section 4.4; 
 (c) Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with all
applicable provisions of the Securities Act and any other federal, state or foreign securities laws or regulations; and 
 (d) In the event
the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than Participant, appropriate proof of the right of such person or persons to exercise the Option. 
 Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and
which may be subject to change from time to time. 
 4.4 Method of Payment. Payment of the exercise price, and any applicable
withholding tax, shall be by any of the following, or a combination thereof, at the election of Participant: 
 (a) Cash; 
 (b) Check; 
 (c) Broker-Assisted Cashless
Exercise. With the consent of the Administrator, delivery of a notice that Participant has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been
directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate exercise price, provided that payment of such proceeds is then made to the Company upon settlement of such sale; 
  

 A-5 

 (d) Share Surrender. With the consent of the Administrator, surrender of other shares of Common Stock
which (i) in the case of shares of Common Stock acquired from the Company, have been owned by Participant for more than six (6) months on the date of surrender (or such other minimum length of time as the Administrator determines from time
to time to be necessary to avoid adverse accounting consequences or violation of any applicable law, rule or regulation), and (ii) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares of Common
Stock with respect to which the Option or portion thereof is being exercised; or 
 (e) Net Exercise. With the consent of the Administrator,
surrendered shares of Common Stock issuable upon the exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the shares of Common Stock with respect to which the Option or portion thereof is
being exercised. 
 4.5 Conditions to Issuance of Stock Certificates. The shares of Common Stock deliverable upon the exercise of the
Option, or any portion thereof, may be either previously authorized but unissued shares of Common Stock or issued shares of Common Stock which have then been reacquired by the Company. Such shares of Common Stock shall be fully paid and
nonassessable. The Company shall not be required to issue or deliver any shares of Common Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions: 
 (a) The admission of such shares of Common Stock to listing on all stock exchanges on which such Common Stock is then listed; 
 (b) The completion of any registration or other qualification of such shares of Common Stock under any state or federal law or under rulings or
regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable; 
 (c) The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its absolute
discretion, determine to be necessary or advisable; and 
 (d) The receipt by the Company of full payment for such shares of Common Stock,
including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under Section 4.4. 
 4.6 Rights as Stockholder. The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares of Common Stock purchasable upon the exercise of any part of the
Option unless and until such shares of Common Stock shall have been issued by the Company to such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment will be
made for a dividend or other right for which the record date is prior to the date the shares of Common Stock are issued, except as provided in Section 13.2 of the Plan. 
 ARTICLE V. 
 OTHER PROVISIONS 
 5.1 Administration. The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be
final and binding upon Participant, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this
Agreement or the Option. 
  

 A-6 

 5.2 Option Transferability. 
 (a) Subject to Section 11.3(a) of the Plan, and except as otherwise set forth in Section 5.2(b), (i) the Option may not be sold, pledged,
assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the shares of Common Stock underlying the Option have been issued, and all restrictions applicable to such shares of Common Stock have
lapsed; and (ii) neither the Option nor any interest or right therein shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including
bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding clause (i). 
 (b) Notwithstanding the foregoing, with respect to any Participant who is a director or officer of the Company or a Subsidiary, the Administrator may
permit any portion of the Option that is not an Incentive Stock Option to be transferred to, exercised by and paid to certain persons or entities related to such Participant, including but not limited to members of such Participant’s family,
charitable institutions or trusts or other entities whose beneficiaries or beneficial owners are members of such Participant’s family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the
Administrator, pursuant to such conditions and procedures as the Administrator may establish. Any permitted transfer shall be subject to the condition that the Administrator receive evidence satisfactory to it that the transfer is being made for
estate and/or tax planning purposes (or to a “blind trust” in connection with such Participant’s termination of employment or service with the Company or a Subsidiary to assume a position with a governmental, charitable, educational
or similar non-profit institution) and on a basis consistent with the Company’s lawful issuance of securities. 
 5.3
Adjustments. Participant acknowledges that the Option is subject to modification and termination in certain events as provided in this Agreement and Article 13 of the Plan. 
 5.4 Notices. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of
the Company at the address given beneath the signature of the Company’s authorized officer on the Grant Notice, and any notice to be given to Participant shall be addressed to Participant at the address given beneath Participant’s
signature on the Grant Notice. By a notice given pursuant to this Section 5.4, either party may hereafter designate a different address for notices to be given to that party. Any notice required to be given to Participant shall, if Participant
is then deceased, be given to the person entitled to exercise his or her Option pursuant to Section 4.1 by written notice under this Section 5.4. Any notice shall be deemed duly given when hand delivered, sent via email, or sent by
certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service. 
 5.5 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 5.6 Governing Law; Severability. The laws of the State of Delaware shall govern the interpretation, validity, administration,
enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. 
  

 A-7 

 5.7 Conformity to Securities Laws. Participant acknowledges that the Plan and this Agreement are
intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and
regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 5.8 Amendments, Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or
the Board, provided that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Option in any material way without the prior written consent of
Participant. 
 5.9 Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple
assignees, and this Agreement shall inure to the benefit of the successors and assignees of the Company. Subject to the restrictions on transfer set forth in Section 5.2, this Agreement shall be binding upon Participant and his or her heirs,
executors, administrators, successors and assignees. 
 5.10 Notification of Disposition. If the Option is designated as an Incentive
Stock Option, Participant shall give prompt notice to the Company of any disposition or other transfer of any shares of Common Stock acquired under this Agreement if such disposition or transfer is made (a) within two years after the Grant Date
(including the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code) with respect to such shares of Common Stock or (b) within one year after the issuance or transfer of such shares of Common Stock to
Participant. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other transfer.

 5.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if
Participant is subject to Section 16 of the Exchange Act, the Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable
exemptive rule 
 5.12 Not a Contract of Employment or Service. Nothing in this Agreement or in the Plan shall confer upon Participant
any right to continue to serve as an Employee, Non-Employee Director, Consultant or other service provider of the Company or any of its Subsidiaries. 
 5.13 Entire Agreement. The Plan, the Grant Notice and this Agreement (including all Exhibits thereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and
agreements of the Company and Participant with respect to the subject matter hereof. 
 5.14 Section 409A. To the extent
applicable, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”). Notwithstanding any provision of the Plan, this Agreement or the Grant Notice to the contrary, in the event that
following the date hereof the Administrator determines that the Option may be subject to 

  

 A-8 

 
Section 409A, the Administrator reserves the right to (without any obligation to do so or to indemnify Participant for failure to do so) adopt such
amendments to the Plan, this Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or
appropriate to (a) exempt the Option from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Option, or (b) comply with the requirements of Section 409A and thereby avoid the
application of any penalty taxes under such Section. 
  

 A-9 

 EXHIBIT B 
 TO 
 STOCK OPTION GRANT NOTICE 
 EXERCISE NOTICE 
 Effective as of today,
                    , 20    , the undersigned (“Participant”) hereby elects to exercise
Participant’s option to purchase the number specified below of shares of Common Stock of Verso Paper Corp., a Delaware corporation (the “Company”), pursuant to the Verso Paper Corp. 2008 Incentive Award Plan, as amended (the
“Plan”), and the Stock Option Grant Notice and Stock Option Agreement dated as of                     , 20    
(respectively, the “Grant Notice” and the “Stock Option Agreement”). Capitalized terms used herein without definition shall have the meanings given thereto in the Plan and, if not defined in the Plan,
in the Stock Option Agreement. 
 Grant Date:
                                        

 Number of Shares as to which Option is Exercised:
                 shares 
 Exercise Price per
Share: $             
 Total Exercise Price:
$                     
 Certificate
to be Issued in Name of:
                                        
                     
 Amount of Payment
Delivered Herewith: $                     (representing the full exercise price for the Shares as well as any applicable withholding tax)

 Form of Payment:
                                 (specify cash, check or other method of payment
permitted under Section 4.4 of the Stock Option Agreement) 
 Type of Option:         ̈    Incentive Stock Option            x    Non-Qualified Stock Option 
 Participant acknowledges that Participant has received, read and understood the Plan, the Stock Option Agreement and the Grant Notice. Participant agrees
to abide by and be bound by their terms and conditions. Participant understands that Participant may suffer adverse tax consequences as a result of Participant’s purchase or disposition of the Common Stock. Participant represents that
Participant has consulted with any tax consultants that Participant deems advisable in connection with the purchase or disposition of the Common Stock and that Participant is not relying on the Company for any tax advice. The Plan, the Stock Option
Agreement and the Grant Notice are incorporated herein by reference. This Exercise Notice, the Plan, the Stock Option Agreement and the Grant Notice constitute the entire agreement of the parties and supersede in their entirety all prior
undertakings and agreements of the Company and Participant with respect to the subject matter hereof. 
  

									
	SUBMITTED BY PARTICIPANT:	 		 	ACCEPTED BY VERSO PAPER CORP.:
					
	Signature:	 	  
	 		 	By:	 	  

	Print Name:	 	  
	 		 	Print Name:	 	  

		 		 		 	Title:	 	  

					
	Address:	 	  
	 		 	Address:	 	6775 Lenox Center Court
		 	  
	 		 		 	Suite 400
		 		 		 		 	Memphis, TN 38115-4436

  

 B-1

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