Document:

EX-10.1

EXECUTION COPY

RETENTION AGREEMENT

THIS RETENTION AGREEMENT (the “Agreement”) is entered into by and between Joan M. Sweeney
(“you”) and Allied Capital Corporation (the “Company”), a Maryland corporation, and will be
effective on May 13, 2009 (the “Effective Date”). You and the Company shall be referred to
collectively as the “Parties.” This Agreement is an important document and you are hereby advised
to review it with an attorney before signing it.

WHEREAS, as Chief Operating Officer, you have had a central role in the management of the
Company;

WHEREAS, in November 2008 you postponed your retirement that you had planned for December 31,
2008;

WHEREAS, you and the Company want to have a transition period before you retire from the
Company;

WHEREAS, the Company will provide you with compensation and other benefits on the terms and
conditions set forth in this Agreement;

WHEREAS, you are willing to continue your employment and perform services for the Company on
the terms and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the promises and the mutual agreements contained herein,
the Parties agree as follows:

1. Responsibilities.

You agree to serve as a Managing Director and Senior Advisor to the Chief Executive Officer
(“CEO”). In that position, you shall report to the CEO and be responsible for advising him on
strategic business and management issues and for such special projects as directed by the CEO. You
shall devote sufficient time, attention, skill and energy to the business of the Company to
accomplish assigned tasks. Except when the CEO reasonably requires your presence in the office or
at meetings at other locations, you may regularly perform your services from any location you
choose as long as you take appropriate precautions to protect the Company’s Confidential
Information (as defined in Section 5 below). You shall perform your responsibilities in accordance
with the standards and policies that the Company may from time to time establish. You may engage
in appropriate civic, charitable, non-profit activities or business activities and devote a
reasonable amount of time to private investments or boards or other activities, provided that you
notify the CEO in writing of any such activities and the CEO reasonably determines that such
activities do not interfere or conflict with your job responsibilities and are not or are not
likely to be contrary to the Company’s interests. Nothing in this Agreement shall preclude you
from managing any passive investment made by you in publicly traded equity securities or other
property (provided that no such investment may exceed 5% of the equity of any entity), without the
prior approval of the Company. You and the Company agree that your position is important to the
Company’s success and that the highest level of performance is required from you. You represent
that you are not subject to any legal obligations or restrictions that would prevent or limit you
from performing your responsibilities under this Agreement.

2. Compensation. During the Term (as defined in Section 3(a) below):

(a) Base Compensation. Your “Base Compensation” shall be $125,000.00 per month (which
would equal one million five hundred thousand dollars on an annualized basis) payable in accordance
with the Company’s regular payroll practices in effect from time to time and subject to withholding
of amounts required by law. The Company may review and adjust your Base Compensation periodically,
usually annually, but may not decrease your Base Compensation.

(b) Business Expenses. The Company shall pay or reimburse you for all ordinary and
reasonable business-related expenses you incur in the performance of your duties under this
Agreement, including reasonable and necessary travel expenses. The Company will reimburse you for
all such expenses upon the presentation by you of an itemized account of such expenditures,
together with supporting receipts and other appropriate documentation.

(c) Stock Options. At a meeting of the Compensation Committee of the Company’s Board
of Directors on May 13, 2009, the Company awarded you 500,000 stock options in accordance with the
terms and conditions of the Allied Capital Corporation Amended Stock Option Plan and a Notice of
Grant of Stock Options and Option Agreement in a form substantially similar to that in Attachment
A.

(d) Special Retention Bonuses. You will receive special retention bonuses, which
shall be subject to withholdings of amounts required by law, as follows: (A) $150,000 to be paid on
the next regularly scheduled payroll date after the first anniversary of the Effective Date, and
(B) $300,000 to be paid on the next regularly scheduled payroll date after the second anniversary
of the Effective Date (“Special Retention Bonuses”).

3. Term of Retention.

(a) The Company agrees to employ you, and you agree to remain in employment with the Company,
up to but not including the third anniversary of the Effective Date (the “Term”), provided that
either you or the Company may end your employment earlier under the terms set forth in Section 3(b)
through 3(f) below. At the end of the Term, your employment with the Company shall terminate.
“Termination Date” shall mean the day that your employment with the Company ends for any reason.
Unless the Company requests otherwise, when your employment ends for any reason, you shall be
deemed to have resigned as of the Termination Date from all positions you hold with the Company or
any affiliated entity, or based on your employment with the Company.

(b) The Company has the right to terminate your employment at any time with or without Cause.
For all purposes under this Agreement, “Cause” shall mean:

	 	(i)	 	a willful refusal by you to substantially perform your duties
under this Agreement, other than a refusal resulting from your complete or
partial incapacity due to physical or mental illness or impairment, which
refusal is materially injurious to the Company and which continues on an
uninterrupted basis for more than thirty (30) days after written notice by the
Company to you specifying in reasonable detail your claimed refusal; provided,
however, that you shall have no authority to bind the Company during the thirty
(30) days after written notice is delivered hereunder;

	 	(ii)	 	a willful act by you, which constitutes embezzlement or
criminal fraud and which is materially injurious to the Company;

	 	(iii)	 	your ineligibility to serve as employee, officer or director
of the Company pursuant to Section 9 of the Investment Company Act of 1940, as
amended; or

	 	(iv)	 	a breach by you of your duty of loyalty to the Company, which
breach is materially injurious to the Company and continues unremedied for more
than thirty (30) days after written notice by the Company to you specifying in
reasonable detail such breach; provided, however, that you shall have no
authority to bind the Company during the thirty (30) days after written notice
is delivered hereunder.

No act, or failure to act, by you shall be considered “willful” if done in good faith and with a
reasonable belief that the act or omission was lawful and in the Company’s best interest. Any
determination of Cause under this Agreement shall be made by a resolution duly adopted by the
affirmative vote of at least two-thirds (2/3) of the members of the Board (not including you if you
are a member of the Board) at a meeting of the Board called and held for that purpose provided that
you shall have been given written notice of such meeting at least ten (10) business days prior to
the meeting and shall have been given the opportunity to be heard by the Board before any such
resolution is passed. Any failure by the Company to follow the procedures set forth in this
Section 3(b) in connection with a termination of your employment shall result in such termination
being deemed to be a termination by the Company without Cause under this Agreement.

(c) You have the right to resign your employment with the Company at any time with or without
Good Reason after having given the Company thirty (30) days written notice. The Company may, in
its sole discretion, select any date prior to the end of such thirty (30) day period as the
Termination Date.

Before you can resign for Good Reason, you must give the Company thirty (30) days written
notice of your intent to resign for Good Reason and of the facts and circumstances you believe
constitute Good Reason. If the Company fails to cure within thirty (30) days after receipt of such
notice, your employment will end on the day following the expiration of that thirty (30) day
period. For purposes of this Agreement, “Good Reason” shall mean that within the sixty (60) days
prior to your notice of intent to resign for Good Reason there has been: (1) a material breach of
this Agreement by the Company; (2) a reduction in your Base Compensation or Special Retention Bonus
(as defined in Section 2 above); (3) a failure by the Company to maintain directors’ and officers’
liability coverage; (4) John Scheurer ceases to be Chief Executive Officer of the Company other
than due to his death or Disability; or (5) a Change in Control. For purposes of this Agreement,
“Change in Control” shall mean the occurrence of any of the following events after the Effective
Date of this Agreement:

(i) the sale or other disposition of all or substantially all of the Company’s
assets;

	 	(ii)	 	the acquisition, whether directly, indirectly, beneficially
(within the meaning of rule 13d-3 of the Securities Exchange Act of 1934, as
amended (the “1934 Act”)) or of record, as a result of a merger, consolidation
or otherwise, of securities of the Company representing fifteen percent (15%)
or more of the aggregate voting power of the Company’s then-outstanding Common
Stock by any “person” (within the meaning of Sections 13(d) and 14(d) of the
1934 Act), including, but not limited to, any corporation or group of persons
acting in concert, other than (i) the Company or its subsidiaries and/or (ii)
any employee pension benefit plan (within the meaning of Section 3(2) of the
Employee Retirement Income Security Act of 1974) of the Company or its
subsidiaries, including a trust established pursuant to any such plan; or

	 	(iii)	 	the individuals who were members of the Board as of the
Effective Date (the “Incumbent Board”) cease to constitute at least two-thirds
of the Board; provided, however, that any director appointed by at least
two-thirds of the then Incumbent Board or nominated by at least two-thirds of
the Nominating Committee of the Board (a majority of the members of the
Nominating Committee shall be the then Incumbent Board or appointees thereof),
other than any director appointed or nominated in connection with, or as a
result of, a threatened or actual proxy or control contest, shall be deemed to
constitute a member of the Incumbent Board.

(d) Your employment shall be deemed to have been terminated by you upon your (i) death or (ii)
inability to perform your duties under this Agreement due to your physical or mental illness or
impairment, even with reasonable accommodation, for more than twenty-six (26) substantially
consecutive weeks in any twelve (l2)-month period (“Disability”). For purposes of this Section
3(d), the Termination Date will be the date of your death or the first day after the substantially
consecutive 26th week that you receive notice of Disability, as applicable.

(e) Under the conditions set forth under this Section 3(e) or Section 3(f) below, you may
become eligible to receive additional payments from the Company, provided, however, that in no
event shall any such payment be made unless you have entered into a Designated Release that has
become final and binding within 36 days after your receive the form of Designated Release from the
Company. “Designated Release” means a form of release that is substantially similar to Attachment
B to this Agreement that the Company may modify as necessary for the release to have the same legal
effect on any claims at that time as the current form of Attachment B would have on any claims if
it were signed today, which the Company shall provide you within seven (7) days after the other
conditions for any payment under this Section 3(e) or Section 3(f) have been met. If during the
Term (i) your employment is terminated by the Company without Cause, by you for Good Reason or due
to your death or Disability and (ii) provided that within thirty-six (36) days after you receive
the form of Designated Release from the Company you (or in the event of your death or legal
incapacity, the legal representative of you or your estate) have released any claims you, your
legal representatives or your heirs, may have against the Company, its predecessors, successors,
parents, portfolio companies or affiliates or any of their then current or former shareholders,
officers, directors, agents, legal representatives, or employees in accordance with the Designated
Release, then the Company shall pay you a lump sum equal to the sum of (x) the total amount of Base
Compensation (as defined in Section 2(a) above) and any Special Retention Bonuses (as defined in
Section 2(d) above) that you would have received if your employment had continued from the
Termination Date through the end of the Term and (y) an amount equal to $2,300 for the first full
month after the Termination Date and for every following month through the last month of the Term.

(f) Subject to the Designated Release requirement set forth in Section 3(e):

	 	(i)	 	If the conditions in either subsection 3(f)(i)(a) or 3(f)(i)(b)
are met, you shall be eligible to receive an additional payment under any such
subsection or subsections, provided, however, that the total amount paid out
under 3(f)(i) shall in no event exceed two million dollars:

	 	a.	 	If there is a Change in Control before the
second anniversary of the Effective Date and your employment is
terminated by you for Good Reason as a result of such Change in Control
or has previously been terminated either by the Company without Cause
or by you for Good Reason, you shall receive a lump sum payment of two
million dollars;

	 	b.	 	If before the second anniversary of the
Effective Date your employment is terminated by the Company without
Cause or by you for a Good Reason other than Good Reason due to a
Change in Control and you also cease to be a member of the Company’s
Board of Directors other than due to your resignation, death or
disability, you shall receive a lump sum payment of one million
dollars.

	 	(ii)	 	If there has not been a Change in Control that would entitle
you to a payment under Section 3(f)(i)(a) above and the conditions in either
subsection 3(f)(ii)(a) or 3(f)(ii)(b) are met, you shall be eligible to receive
an additional payment under any such subsection or subsections, provided,
however, that the total amount paid out under 3(f)(ii) shall in no event exceed
one million dollars:

	 	a.	 	If there is a Change in Control on or after the
second anniversary of the Effective Date but before the third
anniversary of the Effective Date and your employment is terminated by
you for Good Reason as a result of such Change in Control or has
previously been terminated either by the Company without Cause or by
you for Good Reason, you shall receive an additional lump sum payment
of one million dollars;

	 	b.	 	If on or after the second anniversary of the
Effective Date but before the end of the Term your employment is
terminated by the Company without Cause or by you for a Good Reason
other than Good Reason due to a Change in Control and you also cease to
be a member of the Company’s Board of Directors other than due to your
resignation, death or disability, you shall receive a lump sum payment
of five hundred thousand dollars.

(g) Any payment that becomes due under Section 3(e) above shall be made within seven (7) days
following the end of the six-month period after the Termination Date. Any payment(s) that become
due under Section 3(f) above shall be made within the later of: (A) seven (7) days following the
end of the six-month period after the Termination Date; and (B) thirty (30) days following the
Change in Control. All such payments shall be subject to withholdings required by law.

(h) If any provision of this Agreement would cause you to incur any additional tax or interest
under Section 409A of the Internal Revenue Code of 1986, as amended (“the Code”), or any
regulations or Treasury guidance promulgated thereunder, the Company shall reform such provision,
provided that the Company shall: (i) maintain, to the maximum extent practicable, the original
intent of the applicable provision without violating the provisions of Section 409A of the Code;
and (ii) notify and consult with you regarding such amendments or modifications prior to the
effective date of any such change.

(i) In addition to the payments under Section 3 hereof, if it shall be determined that any
event or any payment, vesting, distribution, or transfer by the Company (or any successor,
affiliate or by any other person) to you or for your benefit under the terms of this Agreement or
otherwise (including, without limitation, the Stock Option Agreement(s), the Split Dollar Life
Insurance Agreement or any employee benefit plan)(collectively, a “Payment”) would be subject to or
result in the imposition of the excise tax under Section 4999 of the Code (and any regulations
issued thereunder, any successor provision, and any similar provision of state or local income tax
law)(collectively, the “Excise Tax”), then the Company shall pay to you a lump sum (“Tax
Equalization Payment”) in an amount sufficient that, after payment of the federal, state or local
income, employment or other required taxes (other than taxes that may be imposed by Section 409A of
the Code)(“Regular Taxes”), you shall receive an amount equal to the Excise Tax. Such payment
shall be made within 15 days of the date which you remit such Excise Tax. In determining the
amount of any Regular Taxes, the maximum applicable, marginal rate of tax for the year in which the
Tax Equalization Payment is payable shall be used. The amount of this Tax Equalization Payment
shall be determined by the Company’s independent accountants.

(j) You shall not be required to mitigate the amount of any payment contemplated under Section
3(e) or Section 3(f) above, nor shall any payment be reduced by any earnings that you may receive
from any other source.

4. Employee Benefits.

You shall be eligible to participate in all employee benefit plans and programs that the
Company may provide from time to time to employees at your level, subject in each case to the
generally applicable terms and conditions of any such plan or program and to the determinations of
any person or committee administering any such plan or program. The Company may modify or
terminate any such benefit or program at any time.

5. Confidential Information.

(a) Except as specifically provided below, you shall not disclose or use at any time, either
during or after the Term, any Confidential Information (defined below) of the Company, its parents,
subsidiaries, portfolio companies, predecessors, successors or affiliates (collectively “the
Companies”), whether patentable or not, that you have learned or will learn as a result of your
service to the Companies in any capacity, whether or not you developed such information. For
purposes of this Agreement, “Confidential Information” shall include, without limitation,
information regarding either the Companies’ or their customers’ or business partners’:

	 	•	 	trade secrets or proprietary information;

	 	•	 	existing and prospective investments;

	 	•	 	financing information and sources;

	 	•	 	patent applications, developmental or experimental work, formulas, test data,
prototypes, models, and product specifications;

	 	•	 	financial information;

	 	•	 	financial projections and pro forma financial information;

	 	•	 	sales and marketing strategies, plans and programs and product development
information;

	 	•	 	employees’ and consultants’ benefits, perquisites, salaries, stock options,
compensation, formulas or bonuses, and their non-business addresses and telephone
numbers;

	 	•	 	organizational structure and reporting relationships; and

	 	•	 	business plans.

(b) Information that is or later becomes publicly available in a manner wholly unrelated to
any breach of this Agreement by you will not be considered Confidential Information as of the date
it enters the public domain. If you are uncertain whether something is Confidential Information
you shall treat it as Confidential Information until you receive clarification from the CEO that it
is not Confidential Information.

(c) Confidential Information shall remain at all times the property of the Companies. You may
use or disclose Confidential Information only:

	 	(i)	 	as authorized by the Company and necessary in providing service
to the Company in any capacity; or

	 	(ii)	 	with the prior written consent of the CEO; or

	 	(iii)	 	in a legal proceeding between you and the Company to establish
the rights of either party under this Agreement, provided that you stipulate to
a protective order to prevent any unnecessary use or disclosure; or

	 	(iv)	 	subject to a compulsory legal process that requires disclosure
of such information, provided that you have complied with the procedures in
Section 5(d) below to ensure that the Company has an adequate opportunity to
protect its legal interests in preventing disclosure.

(d) Within two (2) business days of your receipt of a subpoena or other legal process that
could possibly require disclosure of Confidential Information, you shall provide notice to the
Company, including a copy of such process and complete information regarding the circumstances
under which you received it. You shall not make any disclosure of Confidential Information until
the latest possible date for making such disclosure in accordance with the compulsory process
(“Latest Possible Date”). If the Company seeks to prevent disclosure in accordance with any
applicable legal procedures, and provides you with notice before the Latest Possible Date that it
has initiated such procedures, you shall not make disclosures of any Confidential Information that
is the subject of such procedures until such objections are withdrawn or ruled on.

(e) You hereby acknowledge that any breach of this Section 5 would cause the Company
irreparable harm.

6. Non-Disparagement.

During the Term, neither of the parties shall in any way, manner or form, directly or indirectly,
disparage or defame the other party and, in your case, any director, officer or employee of the
Company; provided, however, that this Section shall not prohibit you from making a good faith
assessment of the person’s performance of his or her duties for the Company and where such
assessment is necessary to fulfill your duties to the Company. After the Term, neither of the
parties shall in any way, manner or form, directly or indirectly, disparage or defame the other
party and, in your case, any directors, officers or employees of the Company.

7. Non-Solicitation.

(a) From the Effective Date until the second anniversary of the Termination Date (the
“Restricted Period”), you shall not, directly or indirectly, individually or as part of or on
behalf of any other person or entity (i) hire, or attempt to solicit for hire (other than on behalf
of the Company) any person, who at that time either is or has been within the last six months an
employee of the Company (“Covered Employee”), or (ii) solicit, encourage or attempt to persuade any
consultant, vendor, client or customer to terminate or adversely modify its existing relationship
with the Company, except during the Term where you are authorized to do so and have a reasonable
good faith belief that such termination or modification is in the best interests of the Company.

(b) If, during the Restricted Period, any Covered Employee accepts employment with any person,
company, employer or other entity in which you are an officer, director, employee, partner,
shareholder (other than of less than 5% of the stock in a publicly traded company) or joint
venturer, it shall be presumed that the Covered Employee was hired in violation of this provision
(“Presumption”). This Presumption may be overcome by your showing by a preponderance of the
evidence that you were not directly or indirectly involved in soliciting or encouraging the Covered
Employee to leave employment with the Company.

(c) You agree to notify any person or entity to which you provide services during the
Restricted Period of the terms of your obligations under this Section 7. The Parties agree that
any breach of this Section 7 shall entitle the Company to injunction without bond enforcing this
Section 7 or for breaching Section 7(a) the Company shall be entitled to liquidated damages equal
to the amount of the annual total compensation of any person solicited or hired in breach or
Section 7(a). The Parties are agreeing to liquidated damages for a breach of Section 7(a) as an
option to actual damages in recognition that the Company’s employees are among it most valuable
assets, but it is often difficult to prove the actual damages resulting from such a breach.

8. Indemnification.

Commencing on the Effective Date and at all times thereafter, you shall be indemnified by the
Company pursuant to the Indemnification Agreement entered into between you and the Company on the
27th day of February, 2004. You shall be a beneficiary of a commercially available
directors’ and officers’ liability insurance policy maintained by the Company, on terms and
conditions deemed appropriate by the Board, with the advice of counsel, as long as you remain an
officer or director and any periods thereafter for acts relating to the period of time in which you
served as an officer and/or director.

9. Return of Property.

Upon termination of your employment with the Company for any reason, you agree to immediately
return to the Company all property belonging to the Company. This includes without limitation all
equipment, materials, credit cards and all documents and other information prepared by you or on
your behalf or provided to you in connection with performing your duties for the Company,
regardless of the form in which such documents or information are maintained or stored, including
computer, typed, handwritten, imaged, audio, video, micro-fiche, digital, audio, electronic or any
other means of recording or storing documents or other information. You hereby agree that you will
not retain in any written, printed or electronic or similar form any such document or other
information or copies thereof; provided, however, that you may retain a copy of this Agreement.

10. Cooperation with Legal Proceedings.

During the Term and at all times thereafter, you agree to reasonably cooperate with the
Company or any of its affiliated entities in pursuing or defending any claims or actions now in
existence or which may be brought in the future against or on behalf of the Company, which relate
to events or occurrences that transpired while you were providing services to the Company.  Your
reasonable cooperation in connection with such claims or actions shall include, but not be limited
to, being available to meet with counsel to prepare for discovery or trial and to act as a witness
on behalf of the Company.  You also agree to reasonably cooperate with the Company in connection
with any investigation or review by the Company or any federal, state, or local regulatory
authority that relates to events that occurred while you were providing services to the Company.
You understand that in any legal action, investigation, or review covered by this Section 10 that
the Company expects you to provide only accurate and truthful information or testimony. The
Company shall reimburse you within 30 days after submitting appropriate documentation for all
reasonable expenses, including travel expenses that you necessarily incur in connection with this
Section.

11. Intellectual Property.

You acknowledge that all inventions, innovations, improvements, developments, methods,
designs, analyses, drawings, concepts reports, original works of authorship, copyrights
(“Intellectual Property”) and all similar or related information or materials (whether or not
patentable or copyrightable) belong to the Company provided that they (1) relate to the Company or
its or any affiliate’s actual or demonstrably anticipated business, research and development or
existing or future products or services and (2) are conceived, developed or are made by you,
individually or with others, while you are serving the Company in any capacity (“Work Product”).
To the maximum extent permissible under law, you hereby assign all the rights to any such Work
Product to the Company and agree to execute any document necessary to achieve such assignment and
ensure that the Company has all rights to such Work Product. You have attached a list of any
Intellectual Property you have created or in which you have any right, title or interest as of the
date you sign this Agreement. If no list is attached, it shall mean that there is no such
Intellectual Property. The Parties agree that any breach or threatened breach of this Section 11
shall entitle the Company to injunctive relief enforcing this Section 11 without bond. If any part
of this Section 11 is found to be overbroad, the Parties authorize the court to reform this
provision to provide the maximum protection for the Company that is legally permitted and to
enforce it as reformed.

	12.	 	Release of Claims.

(a) You hereby release each of the Released Parties (as defined below) from any and all
claims, damages, injuries and actions that may as a matter of law be released by agreement that you
or your heirs, agents or any other legal representatives ever had, now have, or may have based on
any act, omission, matter, cause or thing that has happened through the date that you sign this
Agreement (“Released Claims”). For purposes of this Agreement, “Released Parties” shall mean the
Company and its subsidiaries, predecessors, successors, parents, portfolio companies and affiliated
entities and for each of the foregoing entities, their former or current directors, officers,
employees, shareholders, members, agents, parent companies, portfolio companies, successors,
predecessors, subsidiaries, affiliates, assigns and attorneys.

(b) By way of example without reducing the generality of the Released Claims
described above, the Released Claims include, without limitation, any claims under any federal,
state or local law:

	 	•	 	prohibiting discrimination, retaliation, or harassment, including but not
limited to Title VII of the Civil Rights Act of 1964, Civil Rights Acts of 1866
and 1991, the Equal Pay Act, the Americans with Disabilities Act, the Age
Discrimination in Employment Act, Executive Order 11246, Executive Order 11141
and any state or local laws relating to such issues;

	 	•	 	relating to layoffs, termination of employment, conditions of employment,
leave, corporate governance, employee benefits (other than any vested benefits
to which you have a right under any benefits plan), or whistleblowing,
including but not limited to the Employee Retirement Income Security Act, the
Family and Medical Leave Act, the Worker Adjustment and Retraining Notification
Act, and the Sarbanes-Oxley Act, and any state or local laws relating to such
issues; and

	 	•	 	based on the common law of tort or contract, including but not limited to
breach of contract, wrongful discharge, emotional distress, injury to
reputation, tortious interference, promissory estoppel, and negligent
retention.

(c) The Released Claims include any claims that you do not know about when you sign this
Agreement, even if knowing about such claims could have affected your decision to sign the
Agreement.

(d) Nothing in this Agreement shall be construed to prohibit you from filing a charge or
participating in any investigation or proceeding conducted by the Equal Employment Opportunity
Commission or a comparable state or local agency; provided, however, that by signing this
Agreement, you waive any right to recover monetary damages or any other relief in connection with
any such charge, investigation or proceeding.

	13.	 	Review and Revocation Period.

(a) You may take up to twenty-one (21) calendar days after you receive this Agreement to
consider whether to sign and deliver it to John Scheurer, CEO, Allied Capital Corporation, 1919
Pennsylvania Avenue, NW, Washington, DC 20006. If you choose to sign the Agreement before the
twenty-one (21) day period ends, you hereby represent that you did so voluntarily for your own
benefit without pressure from the Company. You have been advised by the Company
to review this Agreement with an attorney before you sign it.

(b) If you sign this Agreement within the twenty-one (21) day period, you then will have seven
(7) calendar days in which to revoke the Agreement by delivering written notice to John Scheurer
before the end of the seven-day period. If you timely revoke this Agreement, this Agreement will
be null and void.

14. Miscellaneous Provisions.

(a) Notices. Unless otherwise provided herein, any notice or other information to be
provided to the Company will be delivered by hand to the CEO, or sent by overnight delivery with
acknowledgement of receipt requested, to:

Chief Executive Officer

Allied Capital Corporation

1919 Pennsylvania Avenue, NW, 3rd Floor

Washington, DC 20006

Copy to:

Sally D. Garr, Esq.

Patton Boggs LLP

2550 M Street, NW

Washington, DC 20037

Any notice or other information to be provided to you will be delivered by hand to you, or sent by
overnight delivery with acknowledgement of receipt requested to (or to such other address as you
may provide notice of in writing):

Joan M. Sweeney

c/o Elaine Charlson Bredehoft

Charlson Bredehoft & Cohen, P.C.

11260 Roger Bacon Drive

Suite 201

Reston, VA 20190

(b) Dispute Resolution. You and the Company agree that arbitration in accordance with
the Federal Arbitration Act (“FAA”) and the Dispute Resolution Procedures set forth in Attachment C
to this Agreement shall be the exclusive means for final resolution of any dispute between the
Parties arising out of or relating to your employment or this Agreement, except: (1) for workers’
compensation or unemployment claims; (2) whenever injunctive relief is necessary to preserve the
status quo or to prevent irreparable injury; (3) disputes relating to Sections 5, 6, 7, 9 or 10 of
this Agreement; or (4) disputes over benefits or payments that are provided under any employee
benefit plan that contains a procedure for resolving disputes. Injunctive relief or enforcement of
any arbitration award may be sought only from any court of competent jurisdiction located in the
Distict of Columbia and you hereby consent to personal jurisdiction and venue in such court.

(c) Company Claims; Prevailing Party. In the event that the Company alleges that you
breached any of your covenants contained in Sections 5, 6, 7, 9 or 10 of this Agreement, the
Company agrees that it shall not offset or suspend any its obligations to make payments pursuant to
Section 3(e) and Section 3(f) hereof, but instead shall be required to maintain a separate action
for damages relating to any such alleged breach. Subject to the provisions of Section 14(b)
hereof, the prevailing party in any dispute brought under this Agreement shall be entitled to
receive her or its attorneys’ fees and related costs associated with resolving such dispute(s).

(d) Nature of Agreement. You and the Company each have been represented by separate
counsel and are entering into this Agreement voluntarily with a full understanding of its terms.
This Agreement, including all attachments hereto, constitute the entire agreement between you and
the Company and supersede and cancel all prior agreements and understandings between you and the
Company, including without limitation the Employment Agreement that you and the Company entered
into as of January 1, 2004, all amendments to that Employment Agreement and all attachments, except
the Indemnification Agreement entered into between you and the Company on the 27th day
of February, 2004 and the existing stock option agreements shall continue in full force and effect.
In making this Agreement, the Parties warrant that they did not rely on any representations or
statements other than those contained in this Agreement. No modification or waiver of or amendment
to any provision of this Agreement will be effective unless in writing and signed by you and the
CEO. A delay or failure by the Company to exercise any right that is the subject of this Agreement
will not be construed as a waiver of that right. A waiver of a breach on any one occasion will not
be construed as a waiver of any other breach. Regardless of the choice of law provisions of the
District of Columbia or any other jurisdiction, the Parties agree that this Agreement shall be
otherwise interpreted, enforced and governed by the laws of the District of Columbia. This
Agreement will continue in effect until all obligations under it are fulfilled. If any part of
this Agreement is held to be void or unenforceable, the remaining provisions shall continue with
full force and effect. This Agreement is not assignable by you, but the Company may assign this
Agreement to any successor entity. This Agreement is binding on you and your legal representatives
and the Company, its successors or assigns. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and
no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the
authorship of any of the provisions of this Agreement.

This Agreement may be executed in any number of counterparts each of which shall be an
original, but all of which together shall constitute one instrument. The headings in this
Agreement are for convenience only and shall not effect the interpretation of this Agreement.

IN WITNESS WHEREOF, each of the Parties has executed this Agreement, in the case of
the Company by its authorized officer, as of the day and year set forth under their signatures
below.

ALLIED CAPITAL CORPORATION

	 	 	 
	/s/ Joan M. Sweeney

	 	By: /s/ Anthony T. Garcia
	 

	 	 
	Joan M. Sweeney

	 	CHAIRMAN, COMPENSATION

COMMITTEE OF THE BOARD OF

DIRECTORS

Date: May 13, 2009 Date: May 13, 2009Exhibit 10.58

Exhibit 10.58

“ *  *  *  *  *  *  *  *  *  *  *  *  * ”
DENOTES MATERIAL THAT HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

SECOND AMENDED AND RESTATED AGENCY AGREEMENT

AGREEMENT made as of October 1, 2004 (this “Agreement”) by and between DIAMOND COMIC
DISTRIBUTORS, INC. (“Diamond”), a Maryland corporation having an address at 1966 Greenspring Drive,
Timonium, Maryland 21093, and MARVEL ENTERPRISES, INC. (“Publisher”), a corporation organized under
the laws of the state of Delaware and having an address at 10 East 40th Street, New
York, New York 10016.

Preliminary Statements

	 	A.	 	On April 24, 2001, Diamond and Publisher entered into an Agency Agreement
(the “Original Agency Agreement”).

	 	B.	 	On July 19, 2002, Diamond and Publisher amended the Original Agency Agreement
by means of a letter agreement (the “Letter Agreement”).

	 	C.	 	On March 1, 2003, Diamond and Publisher amended and restated the Original
Agency Agreement (as amended by the Letter Agreement) (the “Amended and Restated
Agency Agreement”).

	 	D.	 	Diamond and Publisher now desire to make further amendments to the Amended
and Restated Agency Agreement, and to restate the Amended and Restated Agency
Agreement, as amended hereby, in its entirety.

In consideration of the foregoing, and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

Agreement

	1.	 	APPOINTMENT

	 	(a)	 	Publisher and Diamond agree that, effective as of October 1, 2004 (the
“Effective Date”), Diamond is appointed:

	 	(i)	 	Publisher’s (A) exclusive agent in the US and
Canada, and non-exclusive agent throughout the rest of the world, to
perform the services of selling, billing, warehousing, shipping,
returns handling, and all other appropriate customer services for
distribution of Publisher Books (as defined below) to Direct Market
Customers (defined below) and Bookstores (as defined below), and
(B) non-exclusive agent to perform such services for the distribution
of Publisher Books to Specialty Stores (as defined below; Direct Market
Customers, Bookstores, and Specialty Stores are referred to
collectively as “Distribution Channels”).

 

 

	 	(ii)	 	Diamond shall purchase on a non-returnable,
firm-sale basis from Publisher all Publisher Books intended for
Diamond’s
distribution and resale to (A) Distribution Channels located in the
United Kingdom and (B) such other customers serviced by Diamond’s
United Kingdom facility as are listed on Schedule A-1 hereto
(collectively, “U.K. Distribution Channels”) (Publisher Books
described in this subparagraph 1(a)(ii) are referred to as “U.K.
Product”) pursuant to the Terms of Sale to Diamond for U.K. Product
attached hereto as Schedule A-2 and forming a part hereof.
In the event an account located outside the UK Distribution Channels
wishes to buy from Diamond’s UK facility, Diamond will request
permission from Marvel to allow such and this permission will not be
unreasonably withheld. Diamond’s distribution of all U.K. Product
shall be (x) in accordance with the distribution rights granted to
Diamond by Publisher in the preceding subparagraph 1(a)(i); and
(y) limited to Diamond’s distribution and resale to U.K.
Distribution Channels.

	 	(iii)	 	In the event that Publisher believes, in good
faith, that any customer listed on Schedule A-1 or Schedule B is acting
or has acted as a distributor (i.e., a seller to anyone but an
end-user) of Publisher Books received from Diamond, then, upon request
by Publisher to Diamond, such customer’s name shall be removed from
such schedule.

	 	(b)	 	As used herein, the following terms shall mean the following:

	 	(i)	 	“Comic Books” means all English-language
comic book titles published by Publisher companies owned at least 51%
by Publisher (“Affiliates”) under the “Marvel” trademark or all comic
book titles published by Publisher companies which are owned 100% by
Publisher, which are intended to be sold through wholesale and retail
outlets. “Trade Paperbacks” means all bound trade paperback titles
currently published by Publisher and its Affiliates and all bound
trade paperback titles published by Publisher and its Affiliates
during the term of this Agreement which are comprised of collections
of Comic Books.

	 	(ii)	 	“Bookstores” means (A) those customers that
are listed on Schedule C hereto; and (B) all other retailers,
wholesalers and libraries, the business of which is primarily the sale
or distribution of books, periodicals and book-related products;
provided that such term does not include newsstands, Direct Market
Customers and Specialty Stores.

	 	(iii)	 	“Publisher Books” means all Comic Books and
Trade Paperbacks, games, and all posters, art books, soft-cover and
hardcover books published by Publisher and its Affiliates under the
“Marvel” trademark, and any other publications
mutually agreed upon by the parties that are not published under the
“Marvel” trademark, during the term of this Agreement, which are
intended to be sold through wholesale and retail outlets, in each
case excluding U.K. Product.

 

2

 

	 	(iv)	 	“Direct Market Customers” means (A) those
customers that are listed on Schedule B hereto; and (B) Hobby
Shops.

	 	(v)	 	“Hobby Shops” means customers which are
solicited in advance and which purchase 50 or more comic book titles
monthly (as averaged over a three-month period) from a full-line
selection on a non-returnable basis; provided that such term shall not
include newsstands.

	 	(vi)	 	“Specialty Stores” means stores the primary
purpose of which is the sale of music or video items.

	 	(vii)	 	“Business Day” means any day other than a
day which is a national holiday, a day when national banks generally
are closed, or a day on which banks are closed in the District of
Columbia.

	 	(c)	 	Sales of Publisher Books shall be at such prices as are determined by
Publisher from time to time in its sole discretion, with such discounts as are
determined by Publisher from time to time in its sole discretion, but after
consultation with Diamond. Reasonable payment and credit terms for customers shall be
established by Diamond, and, because Diamond is establishing all credit terms, Diamond
shall be responsible for the collection of all accounts receivable related to sales of
Publisher Books by Diamond during the Term and shall assume the responsibility for the
bad debt risk; provided, however, that Publisher shall have the right, upon notice to
Diamond, to require Diamond to extend credit to a particular customer or to grant such
customer more favorable credit terms than those originally agreed to by Diamond, as
the case may be, on the condition that Publisher shall assume the entire risk of loss
with respect to all sales thereafter to such customer. Notwithstanding the foregoing,
Publisher shall assume bad debt responsibility and risk of credit extended for
shipping costs in any calendar year for all amounts in excess of the total fees paid
to Diamond in that calendar year hereunder. Diamond shall have the right to sue or
otherwise seek legal redress against any delinquent customer as to which it has
assumed the responsibility for the bad debt risk and to seek recovery of amounts owed,
and shall have the right to enter into settlements with such delinquent customer in
its reasonable discretion. The terms and conditions of this paragraph do not apply to
U.K. Product which is governed by the terms and conditions set forth in the attached
Schedule A-2.

	 	(d)	 	Publisher acknowledges that Diamond’s customers are free to re-sell copies of
the Publisher Books purchased from Diamond to any customers that they choose, and such
sales, if any, to Diamond’s customers and resales by them will in no way be deemed a
breach of this Agreement.

 

3

 

	 	(e)	 	Diamond shall accommodate Publisher’s reasonable EDI software protocols in
carrying out the services to be performed by Diamond pursuant to this Agreement in the
manner such services are currently performed.

	 	(f)	 	Diamond will maintain an on-line order entry system for use by Direct Market
Customers in the manner currently maintained, subject to modifications made in
Diamond’s discretion which do not adversely affect the services performed hereunder.

	 	(g)	 	Publisher acknowledges that some of its operational and business decisions
have the potential to impact Diamond’s costs for performing the services outlined
herein, in a way not contemplated in this agreement. Publisher therefore agrees, with
respect to any operational or business decision that, to Publisher’s knowledge, is
reasonably likely to have a material impact on Diamond’s costs, to consult with
Diamond so that Diamond may make any suggestions as to how to marginalize the impact
on Diamond. If any such impact so arises where the reasonable likelihood of its
arising was not known, but should have been known, to Publisher, then such
consultation shall occur upon notice to Publisher of such impact.

	2.	 	TERM AND TERMINATION

	 	(a)	 	The term of this Agreement (the “Term”) shall commence on the Effective Date
and shall continue until August 16, 2007, and thereafter shall only be renewed or
extended by a writing executed by both parties. Each consecutive twelve-month period
during the Term commencing on August 17, 2001 (the “Commencement Date”) or any
anniversary of the Commencement Date is referred to herein as a “Year.”
	 
	 	(b)	 	Notwithstanding Paragraph 2(a), this Agreement may be terminated as follows:

	 	(i)	 	Publisher shall have the right to terminate this Agreement at any time
effective after the initial 90 days of this Agreement upon 60 days’ prior
notice;  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  * 

	 	(A)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  * 
	 
	 	(B)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

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

 

4

 

	 	(ii)	 	Without prejudice to any other rights and remedies
available at law or under this Agreement, either party shall have the right
to terminate this Agreement forthwith if the other party commits a material
breach of any of the provisions of this Agreement (other than the payment of
money) and has not either cured such breach within 28 days after having been
requested to do so in writing or, if such breach is not reasonably capable of
being cured within 28 days, either (i) has not (X) used best efforts to
commence to cure such breach within such 28-day period and (Y) continued to
diligently pursue such efforts beyond such 28-day period, or (ii) in any
event has not cured such breach within 45 days of having been requested to do
so in writing. Either party shall have the right to terminate this Agreement
if the other party commits a breach of this Agreement involving the payment
of money and has not cured such breach within five (5) days after having been
requested to do so in writing.

	 	(iii)	 	Either party shall have the right to terminate this
Agreement immediately in the event that the other party is adjudicated as a
bankrupt or insolvent, institutes voluntary proceedings for bankruptcy or
reorganization, makes an assignment for the benefit of creditors, applies for
or consents to the appointment of a receiver for it or a substantial portion
of its property, or admits in writing its inability to pay debts as they
become due. Any such termination shall not release either party of any
accrued obligations hereunder, including Diamond’s right of offset pursuant
to paragraph 2(e) hereafter.

	 	(c)	 	Promptly upon termination of this Agreement, Publisher will remove at its own
expense the inventory of the Publisher Books from Diamond’s distribution center. If
Publisher fails to remove such inventory within sixty (60) days after the later of the
termination of this Agreement and written demand from Diamond that such inventory be
removed, Diamond shall have the right either to dispose of such inventory as it deems
best or to destroy such inventory. Except as specifically provided for herein, upon
termination of this Agreement for any reason, all distribution rights granted by
Publisher to Diamond hereunder shall revert to Publisher.

 

5

 

	 	(d)	 	In the event of expiration or termination of this Agreement by either party,
Diamond shall accept returns of Publisher Books distributed to Bookstores (excluding
U.K. Products) for sixty (60) days following the effective date of termination (the
“Returns Period”). In no event shall Diamond have any right or obligation to accept
any returns after the Returns Period. Diamond may withhold, from amounts otherwise
due with respect to sales of Publisher Books to Bookstores made in each of the three
(3) full calendar months immediately preceding the effective date of termination or
expiration, a percentage of such amounts otherwise due, such percentage to serve as a
reserve for returns (the “Return Reserve”) that Diamond may
receive from Bookstores during the Returns Period. The percentage referred to in
the preceding sentence shall be equal to the following fraction:

	 	(i)	 	returns of Publisher Books, based on credit
value, for the twelve (12) months immediately prior to the effective
date of termination or expiration;

divided by

	 	(ii)	 	gross sales to Bookstores for such twelve-month period.

	 	 	 	Any portion of the Return Reserve that is not applied to credits issued for actual
returns received by Diamond during the Returns Period shall be owed to Publisher,
and any amount by which the Return Reserve is insufficient to cover credits issued
for actual returns received by Diamond during the Returns Period shall be owed to
Diamond. Diamond shall produce a final settlement statement within sixty (60)
days after the end of the Returns Period and the appropriate party will settle the
balance within sixty (60) days after such final statement is sent by Diamond.
After the Returns Period, Publisher shall pay Diamond any amounts which any
customer refuses to pay to Diamond on account of Publisher Books shipped to such
customer by Diamond due to any deduction claimed by such customer for returns
which such customer makes after the Returns Period or in connection with any
dispute over the customer’s right to return any Publisher Books after the Returns
Period, but only to the extent that Diamond has not been able to recoup such
amount from the Return Reserve or through a credit against amounts due to
Publisher from Diamond.
	 
	 	(e)	 	In the event of termination of the Agreement by either party, Diamond shall
have the right to offset any amount owed to Publisher under this Agreement against any
amounts owed to Diamond or any affiliate of Diamond under any other agreements with
Publisher or its Affiliates. Diamond shall have the right to sell all U.K. Product in
accordance with the provisions of this Agreement for a period of 180 days following
any termination of this Agreement (the “Sell-Off Period”). After the Sell-Off Period,
Publisher shall have the option for 90 days thereafter to purchase from Diamond any
and all remaining U.K. Products at their invoiced cost plus any freight costs relating
thereto.

	3.	 	INVENTORY

	 	(a)	 	Diamond shall provide, on a one time basis and at its own expense, trucks to
transfer the existing inventory of Publisher Books located at the warehouses of Client
Distribution Services, Inc. (“CDS”) in Jackson Tennessee, Publisher’s previous
distributor of Publisher Books to Bookstores, and deliver such inventory to Diamond’s
distribution centers (the “Distribution Centers”) as soon as practicable after the
Effective Date of this Agreement.

 

6

 

	 	(b)	 	Publisher will deliver to Diamond’s Distribution Centers sufficient copies of
Publisher Books to meet the demand therefor as estimated by Publisher from time to
time after consultation with Diamond.  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
Diamond, during each given month of the Term, shall pick up from any Publisher
supplier or printer that is
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
In the event either Quebecor or Solisco qualifies as a “no cost”
printer, Marvel will be responsible for any customs, clearance or other charges
resulting from the printers being located in Canada versus the United States.
Marvel will promptly notify Diamond of any anticipated change (compared to the
previous month) in pick-up locations.

	 	(c)	 	Marvel shall retain title to Publisher Books until such title transfers to
the Direct Market Customer, Bookstore or Specialty Store, as applicable, and Diamond
shall have no obligation to insure against, nor bear liability for, any loss due to
damage to, destruction of, or inventory shrinkage of, Publisher Books while they are
located at the Distribution Centers if such loss results from: (i) Normal Shrinkage
(as defined below in this paragraph); (ii) damage or shortages caused by the printer,
where Diamond has provided Publisher with a receivings report indicating such damage
or

 

7

 

shortage, and supporting documentation, within ten (10) Business Days of Diamond’s
receipt of the Publisher Books, or, if customers have reported damages, or, with
respect to Trade Paperbacks only, if Diamond discovers such damages amongst stored
and unopened boxes, after such 10-Business-Day period, where Diamond has provided
Publisher with documentary proof that the damages in question were caused by the
printer; (iii) Bookstore damages defined as Publisher Books returned from
Bookstores in an unsaleable condition; or (iv) events outside of Diamond’s control,
including without limitation those described in paragraph 13 below (“Force
Majeure”). Diamond, however, is responsible for and shall (as set forth in
subparagraph (d) below) insure against all other loss due to damage to, destruction
of, or inventory shrinkage of, Publisher Books while they are located at the
Distribution Centers. “Normal shrinkage” means: (i) with respect to Comic Books,
up to  *  *  *  *  *  *  *  *  *  percent ( *  *  *  * %) of the total number of copies of Comic Books
received at the Distribution Centers during each Year; (ii) with respect to Trade
Paperbacks, up to  *  *  *  *  *  percent ( *  *  *  * %) of the total number of Trade Paperbacks
received at the Distribution Centers during each Year; and (iii) with respect to
any single Comic Book issue or Trade Paperback publication, up to  *  *  *  *  percent
( *  *  *  *  * %) of the total number of copies of such issue or publication. The amount of
Diamond’s liability under this Paragraph 3(c) shall not exceed the actual costs
incurred by Publisher for the copies that are lost or damaged;
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
The terms and conditions of this paragraph do not apply to U.K. Product which is
governed by the terms and conditions set forth in the attached Schedule
A-2.

	 	(d)	 	During the Term (including any renewal terms), Diamond shall provide and
maintain insurance against damage to and loss of copies of Publisher Books warehoused
at the Distribution Centers for which Diamond is liable under this Agreement, naming
Publisher as an additional insured. The amount payable under such policy for damage
or loss of copies of Publisher Books shall be equal to Publisher’s average selling
price to the Direct Market Customers or Bookstores, as the case may be, (less any
distribution fees that would have been charged in respect thereto). At Publisher’s
request, Diamond will provide Publisher with insurance certificates evidencing such
insurance coverage of Publisher’s inventory.

 

8

 

	 	(e)	 	As the authorized distributor of Publisher Books as described in paragraph
1(a), Diamond is authorized to collect and remit U.S. and foreign sales and
use tax, on behalf of Publisher, on all sales of Publisher Books anywhere in the
world where such taxes are applicable (i.e. where sales are not exempt under any
statute, regulation or exemption under applicable law) and shall provide Publisher
with proof of payment and appropriate documentation .

	4.	 	DIAMOND’S SERVICES.

	 	(a)	 	Direct Market Customers.
	 
	 	 	 	Diamond will render a statement of account to Publisher  *  *  *  *  *  days following each
Fiscal Week (which term shall refer to the weekly period beginning on a Tuesday and
ending on a Monday, for Publisher Books scheduled to be on sale (the “On-Sale
Date”) the Wednesday following the end of such period) for all sales of Publisher
Books to the Direct Market Customers invoiced during such Fiscal Week. (Procedures
for U.K. Product are set forth in Schedule A-2.) Diamond will remit
payment to Publisher by wire transfer for each Fiscal Week not later than  *  *  *  *  *
days after the On-Sale Date relating to such Fiscal Week, in an amount equal to
Diamond’s Gross Direct Market Billings (as defined below) during the relevant
Fiscal Week, less the following:

	 	(i)	 	credits for actual returns,
shortages and damage claims of Publisher Books from Direct
Market Customers in accordance with Publisher’s written return
policy specified in Publisher’s terms of sale for which
Diamond has not previously received credit;
	 
	 	(ii)	 	Diamond’s distribution fees
for such sales as provided in paragraph 5;
	 
	 	(iii)	 	actual freight charges
incurred by Diamond in shipping copies of Publisher Books to
Direct Market Customers as previously approved by Publisher;
	 
	 	(iv)	 	actual costs incurred by
Diamond for import duties, tariffs and other costs (including
shipping costs) related to shipping Publisher Books to the
Direct Market Customers located outside of the United States
and Canada; and
	 
	 	(v)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  * 

The term “Gross Direct Market Billings” means the aggregate gross billings by Diamond to Direct
Market Customers in connection with fulfillment of orders for Publisher Books (exclusive of any
prepaid transportation, insurance, and taxes included on customer invoices).

 

9

 

	 	(b)	 	Bookstores and Specialty Stores.

Diamond will render a statement of account to Publisher   *    *    *    *    *   days following each
calendar month for all sales of Publisher Books to Bookstores and Specialty Stores
for such month. Diamond will remit
payment to Publisher for each calendar month   *    *    *    *    *   days after the end of such
calendar month in an amount equal to Diamond’s Gross Bookstore Billings (as defined
below) during the relevant month, less the following:

	 	(i)	 	credits for actual returns,
shortages and damage claims of Publisher Books from Bookstores
and Specialty Stores for which Diamond has not previously
received credits;
	 
	 	(ii)	 	Diamond’s distribution fees
for sales to Bookstores and Specialty Stores as provided in
paragraph 5;
	 
	 	(iii)	 	actual freight charges
incurred by Diamond in shipping copies of Publisher Books to
Bookstores and Specialty Stores as previously approved by
Publisher;
	 
	 	(iv)	 	actual costs incurred by
Diamond for import duties, tariffs and other costs (including
shipping costs) related to shipping Publisher Books to
Bookstores and Specialty Stores located outside of the United
States and Canada;
	 
	 	(v)	 	the Co-op Fee as set forth in
Section 4(d);
	 
	 	(vi)	 	  *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *  ; and
	 
	 	(vii)	 	  *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *  

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

The term “Gross Bookstore Billings” means the aggregate gross billings by Diamond
to Bookstores and Specialty Stores for Publisher Books (exclusive of any prepaid
transportation, insurance, and taxes included on customer invoices). The terms
“Gross Direct Market Billings” and “Gross Bookstore Billings” shall be collectively
referred to herein as “Gross Billings”.

	 	(c)	 	Catalogs.

	 	(i)	 	Direct Market Catalog Produced by Diamond.

During the Term, Diamond, subject to subparagraph 4(b)(ii) below, shall
produce a monthly catalog for distribution to Direct Market Customers
  *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *    *
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Diamond shall be responsible for, and shall bear the cost of, printing and
distributing copies of each edition of the Direct Market Catalog to Direct
Market Customers. Diamond shall also produce and distribute to Direct
Market Customers, at its own cost, order forms for inclusion in or with the
Direct Market Catalog.

 

10

 

	 	(ii)	 	Direct Market Catalog Produced by Publisher.

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	 	(iii)	 	Certain Characteristics of Publisher Catalogs.

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	 	(B)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
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	 	(C)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
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11

 

	 	(D)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
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	 	(G)	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  * 

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

	 	(d)	 	 *  *  *  *  *  *  *  *  *  *  *  *  * 

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

 

12

 

	 	(e)	 	Co-op Fees.

Diamond shall be entitled to a fee (the “Co-op Fee”) equal to  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  The Co-op Fee shall be used for cooperative promotions conducted
by Bookstores which include Publisher Books. Such promotions shall be negotiated
by Diamond, upon consultation and agreement with Publisher. The Co-op Fee shall
be deducted by Diamond from the periodic payments to be made by Diamond to
Publisher pursuant to paragraph 4(a)  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *   *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

	 	(f)	 	Other Services.

Diamond shall provide the following services at no charge to Publisher:

	 	i.	 	Diamond shall insert a reasonable amount
of Publisher solicitation and POS materials into the weekly Comic
Book shipments in a manner reasonably acceptable to Publisher.

	 	ii.	 	Provide Publisher with copies of all
customer service call reports specific to Publisher.

	 	iii.	 	Use reasonable efforts to include “first
look” books with weekly Comic Book shipments provided Publisher
makes them available to Diamond so that it can be delivered to
Distribution Centers by the Saturday prior to the Wednesday release
date.

	 	iv.	 	Provide Publisher with monthly perpetual
inventory reports on all Publisher Books in inventory. A dedicated
Direct Market Customer Account representative, and

	 	v.	 	Ship Publisher product to Publisher not
for resale provided that Publisher will reimburse Diamond actual
out-of-pocket shipping costs.

	5.	 	DIAMOND DISTRIBUTION FEES.

Diamond shall receive distribution fees for each applicable Fiscal Week as set
forth below, provided that Diamond shall receive no distribution fee on any sale
made in connection to any U.K. Product:

	 	A.	 	For Gross Billings, a fee at the following rates:  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  * 

 

13

 

	 	B.	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  * 

	 	C.	 	 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  * 

Such fees shall be deducted by Diamond from the periodic payments to be made
by Diamond to Publisher pursuant to paragraph 4. Diamond agrees that in the event
it should distribute other printed material for Publisher, including trading cards,
games and posters, it will charge the distribution fees relating to Comic Books set
forth herein for such other products.

	6.	 	EXCESS CREDITS.

If Diamond delivers to Publisher any statement of account pursuant to paragraphs
4(a) or (b) showing an amount (an “Excess Credit”) by which the combined credits,
fees and charges properly deductible by Diamond from the Gross Billings to any
Distribution Channel for any periodic accounting period exceed the Gross Billings
from such Distribution Channel in such accounting period, Diamond may elect to
offset the amount of such Excess Credit against any payments due from Diamond under
this Agreement until the full amount of such Excess Credit has been offset by
Diamond against payments due from Diamond. In the event that Diamond is unable to
offset all of its Excess Credits in such manner as of the last day of any calendar
month, then Diamond may deliver a written request to Publisher for payment of an
amount equal to all of Diamond’s unused Excess Credits and such amount shall be
paid to Diamond within 15 days following receipt by Publisher of such notice.

 

14

 

	7.	 	REPORTING.

Diamond will supply Publisher with access to and/or copies of all regularly
available sales and inventory reports concerning Publisher Books, and all sales
reports concerning U.K. Product, at least weekly.  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *
 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  Diamond shall upon
reasonable advance notice but not more frequently than twice in any calendar year
(unless a material problem is found during an audit), permit Publisher or its
certified public accountants to review the books and records of Diamond as they
relate to Publisher Books and U.K.
Product and such other materials as they reasonably request to determine the
correctness of reports and accounting made hereunder; provided, however, that if
Publisher shall discover an actual deficiency for any accounting period of five
percent (5%) or more of the total reported amounts during a fiscal quarter or
quarters by any such examination and/or audit, Diamond shall pay to Publisher the
reasonable cost of such examination and/or audit. Publisher understands and agrees
that Diamond shall have the right to limit access to information concerning
Publisher’s competitors to independent accountants.

	8.	 	REPRESENTATIONS, WARRANTIES AND INDEMNITY.

	 	(a)	 	Publisher warrants and represents to Diamond (i) that it owns or is licensee
of the copyrights to the Publisher Books and U.K. Product (ii) that it has the right
to enter into and lawfully perform this Agreement (iii) that it has not granted to any
third party any of the rights granted to Diamond hereunder or any rights adverse to or
inconsistent with the rights granted hereunder; and (iv) that Publisher has paid, and
will continue to pay as and when required, all royalties and other amounts due to
authors or authors’ representatives with respect to sales of the Publisher Books and
U.K. Product.

	 	(b)	 	Publisher shall indemnify and hold harmless Diamond, and its officers,
directors, shareholders, employees, agents, licensees, representatives, affiliated
companies and purchasers of copies of the Publisher Books and U.K. Product from and
against any and all claims, losses, liabilities, suits or costs (including without
limitation reasonable attorneys’ fees) arising out of any breach or alleged breach or
any falsity or alleged falsity of any of the foregoing warranties or representations
of Publisher or in the event of any third party claim arising from the contents of any
of the Publisher Books and U.K. Product, the breach of any of the obligations of
Publisher hereunder, including but not limited to claims of infringement of copyright
or proprietary rights of any third party or arising from the termination by Publisher
of Client Distribution Services or any other person or entity providing distribution
services to Publisher. Diamond shall promptly notify Publisher of any claim for
indemnification; provided that the failure to give such prompt written notice shall
not rescind or revoke Publisher’s obligation to indemnify but shall only reduce the
amount of the indemnification to the extent that Publisher is materially prejudiced by
such delay. Publisher shall have sole control over the defense or settlement of any
third party action, suit, proceeding or claim provided that any settlement involving
more than the payment of money by Publisher shall require the consent of Diamond,
which consent shall not be unreasonably withheld or delayed.

	 	(c)	 	Diamond warrants and represents that it has the right to enter into and
lawfully perform this Agreement.

 

15

 

	 	(d)	 	Diamond shall indemnify and hold harmless Publisher, and its officers,
directors, shareholders, employees, agents, licensees, representatives,
affiliated companies from and against any and all claims, losses, liabilities,
suits or costs (including without limitation reasonable attorneys’ fees) arising
out of any breach or alleged breach or any falsity or alleged falsity of any of the
foregoing warranties or representations of Diamond or any third party claim arising
from the breach or alleged breach of any of the obligations or agreements of
Diamond hereunder. Publisher shall give Diamond prompt written notice of any claim
for indemnification; provided that the failure to give such prompt written notice
shall not rescind or revoke Diamond’s obligation to indemnify but shall only reduce
the amount of the indemnification to the extent that Diamond is materially
prejudiced by such delay. Diamond shall have sole control over the defense or
settlement of any third party action, suit, proceeding or claim provided that any
settlement involving more than the payment of money by Diamond shall require the
consent of Publisher, which consent shall not be unreasonably withheld or delayed.

	 	(e)	 	Publisher and Diamond shall each promptly notify the other of, and fully
cooperate in the defense of, any claims, demands, actions or proceedings to which the
provisions of this paragraph 8 are applicable.

	 	(f)	 	The provisions of this paragraph 8 shall survive termination of this
Agreement.

	9.	 	GOVERNING LAW.

This is the entire Agreement of the parties concerning the subject matter hereof
and shall be governed by the internal laws (and not the principles of conflict of
laws) of the State of New York applicable to contracts made and to be performed
wholly within that State.

	10.	 	AMENDMENT OR TERMINATION.

No agreement shall be effective to change, modify, waive, release, amend,
terminate, discharge or effect an abandonment of this Agreement, in whole or in
part, unless such agreement is in writing, refers expressly to this Agreement and
is signed by the party against whom enforcement of the change, modification,
waiver, release, amendment, termination, discharge or effectuation of the
abandonment is sought.

	11.	 	CONFIDENTIALITY.

The parties shall keep the terms of this Agreement confidential and shall not
disclose such terms to third parties except as required to carry out its terms or
as otherwise required by law; provided that Diamond shall have the limited right to
disclose some information contained herein pursuant to most favored nation clauses
in agreements executed prior hereto but that it shall limit such disclosure as much
as possible. The parties agree not to issue any press release or other public
statements concerning this agreement or the transactions contemplated hereby
without the consent of the other; provided that each party is permitted to make,
after consultation with the other, such disclosures or statements as that party’s
counsel deems
necessary to maintain compliance with any applicable federal, state or local laws
or regulations or any rules or regulations of any stock exchange.

 

16

 

	12.	 	NOTICES.

All notices and other communications under this Agreement shall be in writing and
deemed given if delivered personally, by courier service, by fax, or by registered
or certified mail (return receipt requested) to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice):

	 	 	 	 	 
	 

	 	If to Diamond, to:
	 	Diamond Comic Distributors, Inc.
	 

	 	 	 	1966 Greenspring Drive
	 

	 	 	 	Timonium, Maryland 21093
	 

	 	 	 	Attention: Stephen A. Geppi, President
	 
	 	 	 	 
	 

	 	If to Publisher, to:
	 	Marvel Enterprises, Inc.
	 

	 	 	 	10 East 40th Street
	 

	 	 	 	New York, New York 10016
	 

	 	 	 	Attention: Executive Vice President, Operating
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Marvel Enterprises, Inc
	 

	 	 	 	10 East 40th Street
	 

	 	 	 	New York, NY 10016
	 

	 	 	 	Attention: Corporate Counsel

All notices given hereunder shall be deemed given at the time of receipt by
personal delivery or reputable courier service or telecopy, or, if mailed by
registered mail prepaid with return receipt requested, on the earlier of actual
receipt as shown by the registry receipt.

	13.	 	FORCE MAJEURE.

Neither party shall be liable for any loss or damage if such party is unable to
perform its obligations hereunder, or if its performance hereunder is delayed, by
causes beyond its control, including, but not limited to, fire, strikes, labor
disputes, acts of God or acts of government.

 

17

 

	14.	 	NO ASSIGNMENT.

This Agreement may not be assigned by Diamond without the written consent of
Publisher. Any purported assignment of this Agreement in contravention of the
preceding sentence shall be null and void. This Agreement shall be binding upon
Publisher and any successor to the publishing business of Publisher.

	15.	 	ENTIRE AGREEMENT.

This Agreement constitutes the entire agreement of the parties hereto with respect
to the subject matter hereof and supersedes all prior agreements and undertakings,
both written and oral, among Diamond and Publisher with respect to the subject
matter hereof. The parties agree that the Amended and Restated Agency Agreement is
hereby amended, restated, and consolidated in its entirety by this Agreement.

 

18

 

IN WITNESS WHEREOF, the parties have placed their hands the day and year first above
written.

	 	 	 	 	 
	 	DIAMOND COMIC DISTRIBUTORS, INC.

 	 
	 	By:  	/s/ Charles Parker
 	 
	 	 	Title:  	Vice President 	 
	 	 	Date:	August 23, 2004 	 
	 	

MARVEL ENTERPRISES, INC.

 	 
	 	By:  	/s/ Allen S. Lipson
 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 	 	Date:	 	 

 

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]