Document:

EX-10.20

 

Exhibit 10.20

LICENSE AGREEMENT

          This Agreement is by and between The Topps Company, Inc. with offices at One Whitehall Street,
New York, NY 10004-2109 (hereinafter “Licensee”), and NATIONAL FOOTBALL LEAGUE PLAYERS ASSOCIATION,
a corporation with offices at 2021 L Street, N.W., Suite 600, Washington, D.C., 20036 (hereinafter
“NFLPA” or “Licensor”). This Agreement shall be effective as of March 1, 2004.

1. REPRESENTATIONS.

     (A) NFLPA represents that the NFLPA has been duly appointed and is acting on behalf of the
active and retired football players of the National Football League (hereinafter “NFL”) who have
entered into a Group Licensing Assignment, either in the form attached hereto as Attachment “A” or
through the assignment contained in Paragraph 4(b) of the NFL Player Contract, and that in such
capacity NFLPA has the right to grant rights and licenses described herein. Licensee acknowledges
that NFLPA also on occasion secures authorization for inclusion in NFLPA licensing programs from
players, including but not limited to retired players, who have not entered into such Group
Licensing Assignment, but who, nevertheless, authorize NFLPA to represent such players for
designated NFLPA licensed programs.

     (B) NFLPA makes no representation that it has the authority to grant, nor does it grant
herein, the right to utilize any symbols, insignias, logos, or other identifying names or marks of
the NFL and/or any of its member clubs. Accordingly, it is understood by the parties hereto that
if likenesses of players are to be used by Licensee in conjunction with any symbols, insignia, or
logos of the NFL or any of its member clubs, in the exercise of the License granted hereunder, it
will be the responsibility of the Licensee to obtain such permission as may be necessary for the
use of such material from the NFL or the club(s) in question. Licensor retains all rights not
expressly and exclusively granted to Licensee hereunder.

2. GRANT OF LICENSE.

     (A) Upon the terms and conditions hereinafter set forth, NFLPA hereby grants to Licensee and
Licensee hereby accepts [INFORMATION SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.]

     (B) The rights, licenses, and privileges granted by NFLPA hereunder shall not constitute or be
used by Licensee as a testimonial or an endorsement of any product, service, or event by all or any
of the players, or by NFLPA or Players Inc.

     (C) Licensee acknowledges that the Grant of License of this Section 2 is contingent upon
Licensee’s compliance with and performance under the terms and conditions of the Service Agreement
between Licensee and Players Inc, effective March 1, 2004 (hereinafter “Service Agreement”). As
provided in Section 14(C), NFLPA may terminate this Agreement if Licensee shall violate any of its
material obligations under the terms of the Service Agreement.

 

 

3. RETAIL LICENSE ONLY.

          The Grant of License set forth in Section 2 of this Agreement applies [INFORMATION SUBJECT TO
AN APPLICATION FOR CONFIDENTIAL TREATMENT.]

4. TERRITORY AND DISTRIBUTION.

     Licensee shall have the right to utilize the rights granted hereunder for distribution of the
licensed product(s) in the following territory: Worldwide.

5. TERM.

     (A) The term of this Agreement shall extend from [INFORMATION SUBJECT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT] (hereinafter referred to as the Original License Period) unless terminated
in accordance with the provisions hereof. Licensee may renew this Agreement for a Second License
Period from [INFORMATION SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT], provided Licensee
has materially fulfilled its obligations hereunder in the Original License Period. Notice of
desire to renew shall be given by Licensee no later than [INFORMATION SUBJECT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT] in the Original License Period. Licensee may renew this Agreement also for
a Third License Period from [INFORMATION SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT],
provided Licensee has faithfully fulfilled its obligations hereunder in the Second License Period.
Notice of desire to renew shall be given by Licensee no later than [INFORMATION SUBJECT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT] of the Second License Period.

     (B) Licensee acknowledges and agrees that Licensee has and shall have no right to extend or
renew this Agreement beyond the term and renewal options, if any, stated herein. No conduct by
either Licensor or Licensee (including without limitation, any approvals granted pursuant to the
Service Agreement) shall create, imply, or infer a new license agreement or an extension of the
stated term and renewal options, if any, of this Agreement, unless same is specifically set forth
in a written agreement signed by both Licensor and Licensee. Licensee’s agreement that this
Agreement is subject to the term and renewal options, if any, stated herein, in all events
whatsoever, is a material inducement for Licensor to enter into this Agreement.

6. ROYALTY PAYMENT.

     (A) Licensee agrees to pay NFLPA a guaranteed royalty of $[INFORMATION SUBJECT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT] for its use of the rights licensed hereunder for the
Original License Period, a guaranteed royalty of $[INFORMATION SUBJECT TO AN APPLICATION FOR
CONFIDENTIAL TREATMENT] for the Second License Period, if applicable, and a guaranteed royalty of
$[INFORMATION SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT] for the Third License Period,
if applicable. The guaranteed royalty shall be paid as follows:

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	 	(i)	 	For the Original License Period, $[INFORMATION SUBJECT TO AN
APPLICATION FOR CONFIDENTIAL TREATMENT.]
	 
	 	(ii)	 	For the Second License Period, if applicable, $[INFORMATION
SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.]
	 
	 	(iii)	 	For the Third License Period, if applicable, $[INFORMATION
SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT.]

     (B) Such guaranteed royalty payments shall be made by Licensee as specified hereinabove
whether or not Licensee uses the rights licensed hereunder, and no part of such guaranteed payments
shall be repayable to Licensee.

     (C) Licensee shall also pay to NFLPA an amount equal to [INFORMATION SUBJECT TO AN APPLICATION
FOR CONFIDENTIAL TREATMENT]%) of the gross sales of the licensed product(s) covered by this
Agreement, less the guaranteed payments specified above for the applicable License Period.
Royalties shall be calculated on a quarterly basis and shall be due as of the last day of each May,
August, November, and February of this Agreement and must be paid no later than fifteen (15) days
following such due dates. Gross sales shall be calculated based on the actual price(s) charged by
Licensee to the retailer or consumer directly or to the wholesaler in an arm’s length transaction.
Licensee shall transact no sale, the effect of which is to reduce the royalty paid by Licensee to
NFLPA; provided, however, that Licensee shall be permitted to provide arm’s length discounts,
allowances, and returns that are normal and customary. Gross sales shall exclude only [INFORMATION
SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT] in any annual period of March 1 to February
28 contained herein, and (b) such exclusion shall be available to Licensee only if Licensee has
theretofore fully complied in a timely manner with its obligation hereunder to pay all royalties,
including guarantees.

7. PAYMENT, INTEREST AND NOTICES.

     All transactions under this Agreement including, without limitation, all payment of royalties
and all notices, reports, statements, approvals, and other communications, shall be with or made
payable in the name of NATIONAL FOOTBALL LEAGUE PLAYERS ASSOCIATION, 2021 L Street NW, Suite 500,
Washington, DC 20036, or its assignee, where applicable. All correspondence, notices, approvals,
and other communications to Licensee shall be with The Topps Company, Inc. with offices at One
Whitehall Street, New York, NY 10004-2109. With regard to all guaranteed royalty and actual
royalty payments only, such payments shall be made by wire transfer in accordance with
Attachment “B” hereto. The payment made hereunder (or the cashing of any check made hereunder)
shall not preclude NFLPA or Players Inc from questioning the correctness thereof at any time and,
in the event any inconsistencies or mistakes are discovered in correction therewith, they shall
immediately be rectified and the appropriate payment made by Licensee. In addition to all other
rights contained in this Agreement, NFLPA shall be entitled to collect and Licensee shall pay daily
interest at the rate of [INFORMATION SUBJECT TO AN APPLICATION FOR CONFIDENTIAL

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TREATMENT]%) monthly, or the maximum interest permitted by law if less, on all payments not
timely made to NFLPA by Licensee.

8. INDEMNIFICATION.

     (A) Licensee agrees that it will not during the term of this Agreement, or thereafter,
challenge the rights of Players Inc or NFLPA in and to the trademarks or names owned by or licensed
to Players Inc or NFLPA or any of the rights licensed as specified in Section 2 of the License
Agreement, or in any way challenge the validity of the Service Agreement or this Agreement.

     (B) Licensee further agrees to assist NFLPA and Players Inc to the extent necessary in the
procurement of any protection or to protect any of the rights conveyed hereunder, and NFLPA, if it
so desires, may commence or prosecute at its own expense any claims or suits in its own name or in
the name of Licensee or join Licensee as a party thereto. Licensee shall notify Players Inc in
writing of any infringement by others of the rights covered by this Agreement that may come to
Licensee’s attention, and Players Inc shall have the sole right to determine whether or not any
action shall be taken on account of any such infringement. Licensee shall not institute any suit
or take any action on account of any such infringement without first obtaining the written consent
of Players Inc to do so and Players Inc shall reasonably consider any such request.

     (C) For its own acts, Licensee hereby indemnifies NFLPA and undertakes to defend NFLPA from
and against any and all claims, suits, losses, damages, and expenses (including reasonable
attorneys’ fees and expenses) arising out of the manufacture, marketing, sale, distribution, or use
of the licensed product(s) that are the subject of this Agreement, or any material breach by
Licensee of any portion of this Agreement. Licensee agrees to obtain, at its own expense, general
liability insurance providing adequate protection for Licensee and NFLPA against any such claims or
suits in amounts not less than [INFORMATION SUBJECT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT].
Within thirty (30) days from the date hereof, Licensee shall submit to NFLPA a fully paid policy or
certificate of insurance naming NFLPA as an insured party, requiring that insurer will not
terminate or materially modify such agreement without written notice to NFLPA at least twenty (20)
days in advance thereof.

     (D) NFLPA hereby indemnifies Licensee and undertakes to defend Licensee against, and hold
Licensee harmless from, any liabilities, losses, damages, and expenses (including reasonable
attorneys’ fees and expenses) resulting from claims made or suits brought against Licensee based
upon the use by Licensee of the rights licensed in Section 2 strictly as authorized in this
Agreement, or any material breach by Licensor of any portion of this Agreement.

     (E) The indemnification obligations set forth in this Paragraph 8 shall survive the expiration
and/or termination of this Agreement.

9. APPROVALS.

     The list of players for whom NFLPA has group licensing authorization (the “Player Agreement
Report”) is available to Company via the Internet at www.nflplayers.com/licensee with Company’s
“user name” and “password.” The Player

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Agreement Report shall be established and may be modified by Players Inc, as specified in the
Service Agreement.

10. TRADING CARDS.

     (A) Licensee may choose to use player names and/or likenesses to promote licensed product(s)
on or in any material pertaining to packaging, hangtags, wrapping material, print ads, flyers,
point-of-purchase displays, press releases, catalogues, trade show booths and exhibits, or any
other written material or medium, including, but not limited to, electronic or interactive use;
provided, however, that such use shall require the prior written approval of Players Inc, as set
forth in the Service Agreement. The players included in any such use, if approved, shall be
selected from the Player Agreement Report referred to in the Service Agreement.

     (B) Licensee may choose to use player names and/or likenesses (including, without limitation,
action footage) in radio or television commercials to promote licensed product(s); provided,
however, that such use shall require the prior written approval of Players Inc, as set forth in the
Service Agreement. The players included in such commercials, if approved, shall be selected from
the Player Agreement Report referred to in the Service Agreement. The content of all scripts and
story boards for proposed radio and television commercials in connection with the promotion of the
licensed product(s) shall require the prior written approval of Players Inc before any commercials
shall be made or shall be contracted for by Licensee.

     (C) Notwithstanding anything to the contrary, Licensee shall be permitted to show on counter
card boxes, without additional separate payment to NFLPA or players: (1) six or more examples of
the football trading cards licensed herein, and/or (2) a list of six or more players’ names whose
images or likenesses are used on the football trading cards licensed herein; provided, however,
that such cards are shown with equal prominence, and provided further, however, that Players Inc
shall retain all rights to prior written approval contained herein and as set forth in the Service
Agreement.

11. NON-INTERFERENCE.

     Licensee agrees and acknowledges that it shall not secure or seek to secure, directly from any
player who is under contract to an NFL club, is seeking to become under contract to an NFL club, or
at any time was under contract to an NFL club, or from such player’s agent, permission or
authorization for the use of such player’s name, facsimile signature, image, likeness, photograph,
or biography in conjunction with the licensed product(s) herein.

12. GOODWILL.

     (A) Licensee recognizes the great value of the goodwill associated with the rights licensed in
Section 2 of this Agreement and acknowledges that such goodwill belongs exclusively to NFLPA and
that said trademarks, names, and rights licensed in Section 2 of this Agreement have acquired
secondary meaning in the mind of the public.

     (B) Licensee agrees that all elements of the licensed product(s) (including all material of
any nature utilizing in any way the rights licensed hereunder, including but not by way of
limitation all packages, cartons, point of sale material, newspaper and magazine advertisements)

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shall be of high standard and of such style, appearance, and quality as to be adequate and
suited to the best advantage and to the protection and enhancements of such rights; that the
marketing of the licensed product(s) will be conducted in accordance with all applicable federal,
state, and local laws and any other applicable governmental or quasi-governmental laws or
regulations of the United States, Canada, or any other country; and that the licensed product(s)
and their exploitation shall be of high standard and to the best advantage and that the same in no
manner reflect adversely upon the good name of NFLPA or Players Inc.

13. SPECIFIC UNDERTAKINGS OF LICENSEE.

     (A) Licensee agrees that every use of the rights licensed hereunder by Licensee shall inure to
the benefit of the NFLPA and that Licensee shall not at any time acquire any title or interest in
such rights by virtue of any use Licensee may make of such rights hereunder.

     (B) All rights relating to the rights licensed hereunder are specifically reserved by NFLPA
except for the License herein granted to Licensee to use the rights as specifically and expressly
provided in this Agreement.

     (C) Upon expiration or termination of this Agreement, all rights granted hereunder shall
immediately revert to NFLPA, and Licensee will refrain from further use of such rights or any
further reference thereto, direct or indirect, except as provided in Section 15(E) below. Licensee
acknowledges that its failure to cease the use of such rights at the termination or expiration of
this Agreement will result in immediate and irreparable damage to Licensor, individual National
Football League player(s), and/or the rights of any subsequent licensee(s).

14. TERMINATION BY NFLPA.

     (A) In the event Licensee does not commence in good faith to cause the manufacture,
distribution, and sale of the licensed product(s) in substantial quantities on or before September
1, 2004, NFLPA shall have, in addition to all other remedies available to it, the option to
terminate the License granted hereunder upon written notice of such termination to Licensee.

     (B) In the event Licensee files a petition in bankruptcy or is adjudicated as bankrupt, or if
a petition in bankruptcy is filed against Licensee or makes an assignment for the benefit of its
creditors or an arrangement pursuant to any bankruptcy laws, or if Licensee discontinues its
business, or if a receiver is appointed for it or its business, all rights granted hereunder shall
terminate automatically and without notice upon the occurrence of any such event. In the event of
such termination, neither Licensee nor its receivers, representatives, trustees, agents,
administrators, successors, and/or assigns shall have any right to sell, exploit, or in any way
deal with the rights granted hereunder or with any licensed product(s), or any carton, container,
packaging or wrapping material, advertising, promotional or display material pertaining to any
licensed product(s).

     (C) If Licensee shall violate any of its other material obligations under the terms of either
this Agreement or the Service Agreement, NFLPA shall have the right to terminate this Agreement
upon thirty (30) days’ notice in writing, and such notice of termination shall become effective
unless Licensee completely remedies the violation within the thirty (30) day period and provides
reasonable proof to NFLPA or Players Inc, as applicable, that such violation has been

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remedied. The obligations of Licensee hereunder shall include, without limitation, any
payment owed and unpaid by the Licensee to NFLPA in accordance with any previous license agreement
between NFLPA and Licensee (or its predecessor) under which the parties operated, without regard to
whether such license agreement was formally executed by an authorized signatory for each party. If
this Agreement is terminated under this Section, all royalties theretofore accrued shall become due
and payable immediately to NFLPA and NFLPA shall not be obligated to reimburse Licensee for any
royalties paid by Licensee to NFLPA.

     (D) Failure to resort to any remedies referred to herein shall not be construed as a waiver of
any other rights or remedies to which NFLPA is entitled under this Agreement or otherwise.

     (E) Upon termination of this Agreement, Licensee shall have one hundred-twenty (120) days to
dispose of and liquidate all inventory. This inventory shall not be available to consumers after
this one hundred-twenty (120) day period expires. Such disposition shall conform to this Agreement
in all respects. Players Inc shall have, at its election, the right to conduct a physical
inventory at the time of termination.

15. PARTNERSHIP.

     Nothing herein contained shall be construed to place NFLPA and Licensee in the relationship of
partners or joint venturers, and Licensee shall have no power to obligate or bind NFLPA in any
manner whatsoever.

16. WAIVER AND/OR MODIFICATION.

          None of the terms of this Agreement shall be waived or modified except by an express agreement
in writing signed by both parties. With the exception of the Service Agreement, there are no
representations, promises, warranties, covenants, or undertakings other than those expressly
contained in this Agreement, which represents the entire understanding of the parties. No written
waiver shall excuse the performance of an act other than those specified herein. The failure of
either party hereto to enforce, or delay by either party in enforcing, any of its rights under this
Agreement shall not be deemed a continuing waiver or modification thereof and either party may
commence, within the time provided by applicable law, appropriate legal proceedings to enforce any
or all of such rights.

17. NON-ASSIGNABILITY.

          This Agreement and all rights and duties hereunder are personal to Licensee and shall not,
without written consent of NFLPA, be assigned, mortgaged, sublicensed, or otherwise encumbered by
Licensee or by operation of law to any other person or entity. Upon any such attempted unapproved
assignment, mortgage, license, sublicense, or other encumbrance this Agreement shall terminate and
all rights granted to Licensee hereunder shall immediately revert to NFLPA. In addition, NFLPA may
terminate this Agreement, at its sole discretion, in the event that Licensee is merged,
consolidated, transfers all or substantially all of its assets, or implements or suffers any
material change in executive management or control, or upon any transfer of more than fifty percent
(50%) of its voting control. If, in its sole discretion, NFLPA shall exercise such termination,
all rights granted to Licensee hereunder shall immediately revert to NFLPA.

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18. NON-DISCLOSURE.

          NFLPA agrees that all information, material, documentation, data and reproductions relating to
Licensee’s business (including, without limitation, the style and/or appearance of Licensee’s
trading cards), trademarks or the licensed products (the “Confidential Information”) shall be held
in strict confidence by NFLPA. The nature and contents of the Confidential Information shall not
be disclosed to any employee, person, firm or entity other than Players Inc (and other than on a
“need-to-know” basis), or used without the prior written permission of Licensee. It is agreed that
Confidential Information shall not include any information or data which (a) is already known to
NFLPA and/or Players Inc, independent of Licensee providing the Confidential Information; (b) is or
becomes publicly known through no wrongful act of NFLPA and/or Players Inc; or (c) is independently
developed by NFLPA and/or Players Inc without reference to any Confidential Information provided by
Licensee.

19. CONSTRUCTION.

          This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York of the United States of America, except that State’s conflict-of-laws provisions to the
extent they are inconsistent with the terms of this Section 19. The parties consent to the
jurisdiction of the State of New York and designate the courts of the State of New York as the
venue for any dispute arising out of, under, or relating to this Agreement.

[signature page to follow]

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          IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day and date
written first above.

The Foregoing is Acknowledged:

											
	NATIONAL FOOTBALL LEAGUE PLAYERS ASSOCIATION	 	 	 	THE TOPPS COMPANY, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas F. Allen
	 	 	 	By:
	 	/s/ Scott Silverstein	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	President
	 	 	 	Title:
	 	President	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	12/3/04
	 	 	 	Date:
	 	12/15/04	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

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ATTACHMENT A

TEAM:                                         

NFL PLAYERS ASSOCIATION

GROUP LICENSING ASSIGNMENT

          The undersigned player, a member of the National Football League Players Association
(“NFLPA”), hereby assigns to the NFLPA and its licensing affiliates, if any, the exclusive right to
use and to grant to persons, firms or corporations (collectively “licensees”) the right to use his
name, signature facsimile, voice, picture, photograph, likeness and/or biographical information
(collectively “image”) in group licensing programs. Group licensing programs are defined as those
licensing programs in which a licensee utilizes a total of six (6) or more NFL player images in
conjunction with or on products that are sold at retail or used as promotional or premium items.
The undersigned player retains the right to grant permission to a licensee to utilize his image if
that licensee is not concurrently utilizing the images of five (5) or more other NFL players in
conjunction with or on products that are sold at retail or are used as promotional or premium
items. If the undersigned player’s inclusion in a particular NFLPA program is precluded by an
individual exclusive endorsement agreement, and the undersigned player provides the NFLPA with
timely notice of that preclusion, the NFLPA agrees to exclude the undersigned player from that
particular program.

          In consideration for this assignment of right, the NFLPA agrees to use the revenues it
receives from group licensing programs to support the objectives as set forth in the By-laws of the
NFLPA. The NFLPA further agrees to use its best efforts to promote the use of NFL player image in
group licensing programs, to provide group licensing opportunities to all NFL players and to ensure
that no entity engages in a group licensing program without first obtaining a license from the
NFLPA. The NFLPA makes no representations regarding group licensing other than those expressed
herein. This agreement shall be construed under New York law.

          This assignment shall expire on December 31, 2007 and may not be revoked or terminated by the
undersigned player until such date.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Player’s Signature	 	 
	 
	 	 	 	 	 	 	 	 
	Agreed to by the NFLPA:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Player’s Name (PLEASE PRINT)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 
	Title
	 	 	 	 	 	 	 

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ATTACHMENT B

Wire Transfer Instructions

Please wire only guaranteed royalty payments and actual royalty payments to the following:

SUNTRUST BANK

1445 NEW YORK AVE., N.W.

WASHINGTON, D.C. 20005

Account Name: National Football League Players Association and

                             National Football League Players Inc

ABA/ Routing #: 061000104

Account #: 0000707221706

Tax id # 52-1169809

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Exhibit 10.21

SERVICE AGREEMENT

          THIS AGREEMENT is executed by and between The Topps Company, Inc. with offices at One
Whitehall Street, New York, NY 10004-2109 (hereinafter “Company”), and National Football League
Players Incorporated (“Players Inc”), a for-profit corporation organized under the laws of the
Commonwealth of Virginia, having its principal place of business at 2021 L Street, N.W., Suite 500,
Washington, D.C., 20036. This Agreement shall be effective as of March 1, 2004.

     1. REPRESENTATIONS.

     (A) Players Inc represents that the National Football League Players Association (“NFLPA”) has
entered into certain contracts with Company wherein NFLPA has authorized and will authorize Company
to utilize the Group Licensing Rights (as defined in the Licensing Agreement between NFLPA and
Company, effective March 1, 2004 (hereinafter “Licensing Agreement”), the Names, and/or the Logo.

     (B) Players Inc represents that it has entered into an agreement with NFLPA, effective March
1, 2004 (hereinafter “NFLPA Agreement”), to provide various services with respect to the use of
certain Group Licensing Rights pursuant to the Licensing Agreement.

     2. DESCRIPTION OF SERVICES. Players Inc shall perform, as described herein, such services
required to implement and enforce this Licensing Agreement and the NFLPA Agreement. Such services
shall include, but are not limited to, the following:

     (A) NEGOTIATIONS AND APPROVALS.

          (i) With respect to rights licensed under the Licensing Agreement, Company agrees and
acknowledges that Players Inc shall review and approve or disapprove in writing the specific manner
in which such rights are to be used on the licensed products in question under such Licensing
Agreement.

          (ii) In the event Company is interested in seeking an individual player’s personal
endorsement, Company agrees and acknowledges that Players Inc shall review and approve or
disapprove in writing such endorsement, provided the individual player personally approves such
endorsement. Company acknowledges that all contact between Company and such player or player’s
agent shall be made by Players Inc. Company further agrees and acknowledges that any player who is
committed individually by contract for products or services competitive with those of Company may
be required to cease from further inclusion in this Agreement and the Licensing Agreement;
provided, however, that the use of such player for such products and services shall be on an
individual basis and shall not be combined with the use of five or more other NFL players.

          (iii) With respect to the promotion by Company of the sale of licensed products under the
Licensing Agreement, Company agrees and acknowledges that Players Inc agrees to review and approve
or disapprove in writing such promotions. Company further agrees

 

 

and acknowledges that any promotions using the licensed products covered by the Licensing
Agreement as premium items shall require a separate agreement, to be negotiated by Players Inc,
between NFLPA and Company or other sponsor of the promotion, with separate terms and conditions,
and nothing contained herein shall obligate NFLPA, Players Inc, or Company to enter into such an
agreement.

          (iv) Company agrees to notify Players Inc of any infringement by others of the rights granted
by the Licensing Agreement. Company also agrees and acknowledges that Players Inc shall completely
investigate whether or not any action shall be taken on account of any such infringement. Further,
in the event Company requests Players Inc’s approval of any suit or action by Company on account of
any such infringement, Company further agrees and acknowledges that Players Inc shall completely
investigate Company’s request.

          (v) The list of players for whom Players Inc has group licensing authorization (the “Player
Agreement Report”) is available to Company via the Internet at www.nflplayers.com/licensee with
Company’s “user name” and “password.” In addition, Players Inc may secure authorization from
players not listed on the Player Agreement Report, including but not limited to retired players.
Notwithstanding the foregoing:

          (a) By February 1 of each calendar year covered by this Agreement, Company shall submit
to Players Inc a proposed list of players’ names for inclusion in the licensed product(s)
for the upcoming football season. Company shall cross-reference its player list against the
current Player Agreement Report. After cross-referencing the lists, Company must submit its
proposed final player list to Players Inc for approval. With regard to jersey numbers for
active players, it is Company’s sole responsibility to cross-reference its player list
against player rosters posted on www.nfl.com. If applicable, jersey numbers for retired
players must be submitted to Players Inc for approval.

          (b) Players Inc shall respond to such submissions in writing to Company, signifying
approval or disapproval in the case of each player’s name so requested within fifteen (15)
business days or such submissions shall be deemed approved.

          (c) Company may submit requests in writing to Players Inc for additions, deletions, or
substitutions of players’ names and Players Inc shall respond to such requests within
fifteen (15) business days or such submissions shall be deemed approved.

          (vi) Company agrees and acknowledges that Players Inc shall review and approve or disapprove
in writing the quality and style of samples of artwork, plans, photographs, and any other
representations of licensed products produced by or for Company (hereinafter collectively
“artwork”) and samples of each of the licensed products, together with their packaging, hangtags,
and wrapping material. Any approval by Players Inc will be in writing. Company further agrees and
acknowledges that review and approval shall be before the manufacture, sale, or distribution of
such artwork, whichever occurs first, and no licensed products shall be manufactured, sold, or
distributed by Company without such prior written

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approval of such artwork and such sample licensed products. Players Inc shall respond in
writing signifying approval or disapproval of such submissions within 15 business days. Any
request by Company for such approval that is received by Players Inc and is not responded to within
fifteen (15) business days shall be deemed approved by Players Inc. Subsequent to final approval,
Company will send periodically a reasonable number of production samples of licensed products to
Players Inc to ensure quality control, and should Players Inc require additional samples for any
reason, Players Inc may purchase such at Company’s cost.

          (vii) Company agrees and acknowledges that Players Inc shall review and approve or disapprove
in writing the use by Company of player names, likenesses, or both to promote licensed products on
or in any material pertaining to packaging, hangtags, wrapping material, print ads, flyers,
point-of-purchase displays, press releases, catalogues, trade show booths and exhibits, or any
other written material or medium, including but not limited to electronic, interactive or internet
use. Any approval by Players Inc shall be in writing. Company further agrees and acknowledges
that review and approval shall be before implementation of such promotional material. Players Inc
shall respond in writing signifying approval or disapproval within fifteen (15) business days. Any
such request by Company for approval that is received by Players Inc and is not responded to within
fifteen (15) business days shall be deemed approved by Players Inc. Company further agrees and
acknowledges that the number of players included in any such use, if approved, shall be a minimum
of six, and shall be selected from the Player Agreement Report. Player names, likenesses, or both
so used shall be written or displayed with equal prominence.

          (viii) Company agrees and acknowledges that Players Inc shall review and approve or disapprove
in writing the use by Company of player names, likenesses, or both (including, without limitation,
action footage) in radio or television commercials to promote licensed products. Any approval by
Players Inc will be in writing. Company further agrees and acknowledges that review and approval
shall be before production and dissemination of any such radio or television commercial. Players
Inc shall respond in writing signifying approval or disapproval of such submissions within fifteen
(15) business days. Any such request by Company for approval that is received by Players Inc and
is not responded to within fifteen (15) business days shall be deemed approved by Players Inc.
Company further agrees and acknowledges that the number of players included in such commercials, if
approved, shall be a minimum of six and shall be selected from the Player Agreement Report. The
players used in such commercials shall be shown with equal prominence. Company further agrees and
acknowledges that Players Inc shall review all scripts and story boards before any commercials
shall be made or shall be contracted for by Company.

          (ix) Company agrees and acknowledges that Players Inc will negotiate with Company regarding
the amount of required additional payments to Players Inc separate from and in addition to the
guarantees or royalty payments included in the Licensing Agreement, if Company requests to use
player names, likenesses, or both in accordance with this subsection 2(C), in any radio or
television commercials, print ads, point-of-purchase displays, packaging, hangtags, wrapping
material, press releases, catalogues, flyers, trade show booths and exhibits, or any other written
or graphic material or medium, including but not limited to electronic or interactive use, to
promote licensed products. Company further agrees and acknowledges that all contacts with such
players or their agents shall be made by Players Inc.

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          (x) In the event Company wishes to secure an individual player or players to make appearances
to promote licensed products or to autograph licensed products, Company agrees and acknowledges
that the selection of such player and the separate fee to Players Inc for such player services
shall be subject to mutual agreement between Company and Players Inc, provided, however that
player’s autograph services may be secured on a non-exclusive basis only. Company may at its
discretion require that an autograph session be scheduled to witness the player’s autograph
signing, provided that Company communicates to Players Inc in writing at the time the request for
the player’s services is made that Company will require that player perform such services at a
witnessed session. Company further agrees and acknowledges that all contact with the requested
player or his agents shall be made by Players Inc. Once the player has made the appearance or
performed the autograph service, payment shall be made immediately to Players Inc. Any such
payments shall be separate from and in addition to any royalties or payments paid by Company under
the Licensing Agreement or this Service Agreement. Once the selection of such player and such
separate fee have been agreed upon by Company and Players Inc, in the event of cancellation of such
appearance or autographing (other than by player or Players Inc), Company shall nevertheless be
obligated to make such fee payment to Players Inc immediately upon such cancellation.

          (xi) Notwithstanding anything to the contrary hereinabove, Company shall be permitted, without
additional separate payment to Players Inc for players, to show on counter card boxes: (1) six or
more examples of the football trading cards licensed herein, and/or (2) a list of six or more
players’ names whose images or likenesses are used on the football trading cards licensed herein;
provided, however, that such cards are shown with equal prominence, and provided further, however,
that Players Inc shall retain all rights to prior written approval contained hereinabove.

     (B) PERIODIC STATEMENTS.

          (i) Company shall furnish to Players Inc, no later than thirty (30) days following the last
day of each May, August, November, and February of this Agreement, a complete and accurate
statement certified to be accurate by an authorized representative of Company, showing the number,
description, and gross purchase price, of the licensed products distributed by Company during the
preceding quarterly reporting period, together with any returns made during such reporting period.
Once in every twelve-month period, Company shall furnish Players Inc with a detailed statement
certified by an officer of Company, showing the number of gross sales of the licensed products
covered by the Licensing Agreement.

          (ii) Such statements shall be furnished to Players Inc whether or not any of the licensed
products have been purchased during the reporting period for which such statement is due. The
payment made hereunder (or the cashing of any check paid hereunder) shall not preclude Players Inc
from questioning the correctness thereof at any time and, in the event any inconsistencies or
mistakes are discovered in connection therewith, they shall immediately be rectified and the
appropriate payment made by the appropriate party.

-4-

 

     (C) BOOKS AND RECORDS.

          (i) For a period of two (2) years following the termination or expiration of this Agreement,
Company shall maintain accurate books and records for itself and any subsidiary or affiliated
entity with respect to its sale of licensed products under this Agreement and the Licensing
Agreement. Said books and records shall be subject to inspection and audit by Players Inc or its
duly authorized representative at reasonable times upon reasonable notice from Players inc to
Company but in no event less than ten (10) business days notice. In addition, Company shall cause
any entity with which it contracts for services relating to production of product to cause its
books and records to be available for audit and inspection by Players Inc to the extent necessary
to confirm the audit of Company. Company shall not interfere with such inspections and audits in
any way.

          (ii) The cost of such inspections and audits shall be paid by Company if the result of such
inspections and audits indicates a difference of 2% or more, when compared to the statement
certified to be accurate by an officer of Company for the twelve month period covered by such
statement, or the cost of such inspections and audits as the result of an inspection or audit
performed by Players Inc shall be paid by Players Inc if such difference is less than 2%.

          (iii) In the event any inconsistencies or mistakes are discovered as a result of such
inspections and audits, they shall be rectified immediately and the appropriate payment shall be
made immediately by the appropriate party.

     (D) COMPANY DATABASE. Licensee agrees to distribute to its customer database, in conjunction
with Players Inc, one (1) promotional email per License Period. Content for such promotional
emails shall be provided jointly by Licensee and Players Inc and subject to mutual agreement of
both parties. Licensee agrees that content provided by Players Inc may promote Players Inc
licensees, sponsors, partners, or branded programs, properties, or events, excluding any companies
and/or products competitive with Licensee unless approved by Licensee.

     3. TRADING CARDS.

          Company shall provide to Players Inc free of charge the following:

     (A) Prior to December 1 of each NFL season, for each player included in the licensed products,
[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT];

     (B) Prior to December 1 of each NFL season, for Players Inc, [INFORMATION SUBJECT TO A REQUEST
FOR CONFIDENTIAL TREATMENT].

     4. COPYRIGHT AND TRADEMARK NOTICES.

     (A) Company shall prominently place or cause to be placed Players Inc’s trademark or
trademarks (hereinafter “Players Inc’s Trademark”) on the licensed products and on packaging,
wrapping, advertising (both print and media regardless of medium, e.g., broadcast, Internet, etc.),
and any other material, including trade show booths and exhibits, sales catalogues, and other

-5-

 

sales/marketing materials in connection with such licensed product(s) that are publicly
distributed or relating to such licensed product(s).

     (B) Players Inc’s Trademark appearing on the licensed product(s) and on all materials in
connection with the licensed product(s) distributed, or relating to such licensed product(s), shall
appear precisely according to the specifications set forth in Appendix B attached hereto, which may
be amended from time to time by Players Inc, without variation, with the letter “R” enclosed within
a circle.

     (C) Additionally, Company shall imprint or cause to be imprinted the following text on any
such licensed product(s) and/or materials therefore:

“Officially Licensed Product of

Players Inc”

and

“visit NFLPLAYERS.COM”

The specific text imprinted shall be subject to Players Inc’s sole discretion.

     (D) For any licensed product, Company shall also prominently place Players Inc’s Trademark and
a Players Inc “content box” on all NFL football pages of Company’s website and on any other page
within such website that utilizes the rights licensed hereunder. “Content box” shall be defined as
editorial, sweepstakes or other promotional content designed and developed by Players Inc. The
placement of Players Inc’s Trademark and “content box” shall be in the upper section of the page
and immediately visible. The logo and “content box” on each page shall contain the Players Inc URL
as follows: NFLPLAYERS.COM and shall serve as a hyperlink to the Players Inc website at
www.nflplayers.com.

     5. TERM.

     (A) The term of this Agreement shall extend from [INFORMATION SUBJECT TO A REQUEST FOR
CONFIDENTIAL TREATMENT] (hereinafter referred to as the Original License Period) unless terminated
in accordance with the provisions hereof. Licensee may renew this Agreement for a Second License
Period from [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT], provided Licensee has
materially fulfilled its obligations hereunder in the Original License Period. Notice of desire to
renew shall be given by Licensee no later than [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT] in the Original License Period. Licensee may renew this Agreement also for a Third
License Period from [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT], provided
Licensee has faithfully fulfilled its obligations hereunder in the Second License Period. Notice
of desire to renew shall be given by Licensee no later than [INFORMATION SUBJECT TO A REQUEST FOR
CONFIDENTIAL TREATMENT] of the Second License Period.

     (B) Company acknowledges and agrees that Company has and shall have no right to extend or
renew this Agreement beyond the term and renewal options, if any, stated herein. No

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conduct by either Players Inc or Company shall create, imply, or infer a new license
agreement, service agreement, or extension of the stated term and renewal options, if any, of this
Agreement or the Licensing Agreement, unless same is specifically set forth in a written agreement
signed by both Players Inc and Company. Company’s agreement that this Agreement is subject to the
term and renewal options, if any, stated herein, in all events whatsoever, is a material inducement
for Players Inc to enter into this Agreement.

     (C) Notwithstanding anything to the contrary, this Agreement is coextensive with the Licensing
Agreement, and termination of the Licensing Agreement shall result in termination of this
Agreement. As provided in the Licensing Agreement, termination of this Agreement shall result in
termination of the Licensing Agreement.

     6. COMPENSATION.

     (A) In consideration of the payment of one dollar, and other good and valuable consideration
hereby acknowledged as received, Players Inc agrees to provide Company with the services listed in
this Agreement.

     Company agrees to spend the following total amounts on activities which stimulate and promote
the market for licensed product(s) through player appearances, highlighting, autographing, or
endorsements, and/or Players Inc branded programs, properties, or events (herein after “marketing
payments”), subject to prior written approval by Players Inc of such activities:

[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]% of
sales during the Original Service Period, and $[INFORMATION SUBJECT
TO A REQUEST FOR CONFIDENTIAL TREATMENT] for the 2005 Stay Cool in
School program, [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT]% of sales during the Second Service Period, and
$[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] for
the 2006 Stay Cool in School program, and

[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]% of
sales during the Third Service Period, if applicable, and
$[INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT] for
the 2007 Stay Cool in School program.

Such activities shall not include standard and customary industry trade advertising and sales
materials. At the end of each Service Period, if Company has not spent the required amount as
marketing payments, a payment equal to the amount of the difference shall be made by Company to
Players Inc no later than April 1 following the end of such Service Period. Company shall provide
documentation that such approved expenditures have been made. The expenditure documentation shall
be provided on a quarterly basis and shall be certified by an authorized

-7-

 

representative of Company. Such documentation shall be subject to inspection and audit by Players
Inc on the same basis as Company’s books and records.

     7. PAYMENTS AND NOTICES. All transactions under this Agreement including, without limitation,
all payments and all notices, reports, statements, approvals, and other communications, shall be
with or made payable in the name of NATIONAL FOOTBALL LEAGUE PLAYERS INCORPORATED, 2021 L Street
NW, Suite 500, Washington, DC 20036, or its assignee, where applicable. All correspondence,
notices, approvals, and other communications to Company shall be with The Topps Company, Inc., One
Whitehall Street, New York, NY 10004-2109.

     8. INDEMNIFICATION AND INSURANCE.

     (A) Company agrees that it will not during the term of this Agreement, or thereafter,
challenge the rights of Players Inc or NFLPA in and to the trademarks or names owned by or licensed
to Players Inc or NFLPA or any of the rights licensed as specified in Section 2 of the License
Agreement, or in any way challenge the validity of the License Agreement or this Agreement.

     (B) Company further agrees to assist Players Inc or NFLPA to the extent necessary in the
procurement of any protection for the Licensed Rights or to protect any of the Licensed Rights, and
Players Inc, if it so desires, may commence or prosecute at its own expense any claims or suits in
its own name or in the name of Company or join Company as a party thereto in instances where a
court of competent jurisdiction has determined that Company is an indispensable party. Company
shall notify Players Inc in writing of any infringement or imitations of which Company becomes
aware.

     (C) For its own acts, Company hereby indemnifies Players Inc and undertakes to defend Players
Inc from and against any claims, suits, losses, damages, and expenses (including reasonable
attorneys’ fees and expenses) arising out of any acts or omissions of Company in conjunction with
this Agreement, including but not limited to the marketing, sale, distribution, or use of the
Licensed Rights. Company agrees to obtain, at its own expense, general liability insurance
providing adequate protection for Company and Players Inc against any such claims or suits in
amounts not less than [INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT]. Within thirty
(30) days from the date hereof, Company shall submit to Players Inc a fully paid policy or
certificate of insurance naming Players Inc as an insured party, requiring that insurer will not
terminate or materially modify such agreement without written notice to Players lnc. at least
twenty (20) days in advance thereof.

     (D) Players Inc hereby indemnifies Company and undertakes to defend Company against, and hold
Company harmless from any liabilities, losses, damages, and expenses (including reasonable
attorneys’ fees and expenses) resulting from claims made or suits brought against Company based
upon a breach of any obligation or representation or warranty of Players Inc hereunder.

     (E) The indemnification obligations set forth in this Paragraph 8 shall survive the expiration
and/or termination of this Agreement.

-8-

 

     9. PARTNERSHIP. Nothing herein contained shall be construed to place Company and Players Inc
in the relationship of partners or joint venturers, and Company shall not have the power to
obligate or bind Players Inc in any manner whatsoever.

     10. WAIVER OR AMENDMENT. None of the terms of this Agreement shall be waived or amended
except by an express agreement in writing signed by both parties. With the exception of the
Licensing Agreement, there are no representations, promises, warranties, covenants, or undertakings
other than those contained in this Agreement. No written waiver shall excuse the performance of an
act other than those specified therein. The failure of either party hereto to enforce, or delay by
either party in enforcing, any of the Licensed Rights shall not be deemed a continuing waiver or
amendment thereof and either party may commence, within the time provided by applicable law,
appropriate legal proceeding(s) to enforce any or all of such rights.

     11. NON-ASSIGNABILITY. Company shall not assign this Agreement without the prior written
consent of Players Inc.

     12. SEVERABILITY. This Agreement is intended to be performed in accordance with, and only to
the extent permitted by, all applicable laws, ordinances, rules, and regulations. If any provision
of this Agreement or the application thereof to any person or circumstance shall be invalid or
unenforceable, for any reason and to any extent, but the extent of such invalidity or
unenforceability does not destroy the basis of the bargain between the parties as expressed herein,
the remainder of this Agreement and the application of such provision to other persons or
circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent
permitted by law.

     13. NON-DISCLOSURE. Players Inc agrees that all information, material, documentation, data
and reproductions relating to Company’s business (including, without limitation, the style and/or
appearance of Company’s trading cards), trademarks or the licensed products (the “Confidential
Information”) shall be held in strict confidence by Players Inc. The nature and contents of the
Confidential Information shall not be disclosed to any employee, person, firm or entity other than
NFLPA (and other than on a “need-to-know” basis), or used without the prior written permission of
Company. It is agreed that Confidential Information shall not include any information or data
which (a) is already known to Players Inc or NFLPA, independent of Company providing the
Confidential Information; (b) is or becomes publicly known through no wrongful act of Players Inc
or NFLPA; or (c) is independently developed by Players Inc or NFLPA without reference to any
Confidential Information provided by Company.

     14. CONSTRUCTION. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York of United States of America, except that State’s conflict-of-laws
provisions, to the extent they are inconsistent with the terms of this Section 14. The parties
consent to the jurisdiction of the State of New York and designate the courts of the State of New
York as the venue for any dispute arising out of, under, or relating to this Agreement.

-9-

 

          IN WITNESS WHEREOF, Company and Players Inc have caused this Agreement to be signed by their
authorized representatives, as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	The Topps Company, Inc.	 	 	 	National Football League	 	 
	 	 	 	 	 	 	Players Incorporated	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Scott Silverstein
	 	 	 	By:
	 	/s/ Douglas F. Allen	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	President
	 	 	 	Title:
	 	President	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	12/15/04
	 	 	 	Date:
	 	12/3/04	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

-10-

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