Document:

Form of 2008 Incentive Award Plan Restricted Stock Award Grant Notice

 Exhibit 10.2 
 VERSO PAPER CORP. 
 2008 INCENTIVE AWARD PLAN 
 RESTRICTED STOCK AWARD GRANT NOTICE 
 AND 
 RESTRICTED STOCK AWARD AGREEMENT 
 Verso Paper Corp., a Delaware corporation (the “Company”), pursuant to its 2008 Incentive Award Plan, as amended (the “Plan”), hereby awards to the individual listed below
(“Participant”) that number of shares of the Company’s common stock, par value $.01 per share (“Common Stock”), set forth below (the “Shares”), subject to all of the terms and conditions set
forth herein and in the Restricted Stock Award Agreement attached hereto as Exhibit A (the “Restricted Stock Agreement”) (including, without limitation, the Restrictions on the Shares set forth in the Restricted Stock
Agreement) and in the Plan, each of which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Restricted Stock Award Grant Notice (the “Grant
Notice”) and the Restricted Stock Agreement. The Restricted Stock award evidenced by this Grant Notice and the Restricted Stock Agreement shall be referred to herein as the “Award.” 
 Participant:
                                        

 Grant Date:
                                        
 
 Total Number of Shares of Restricted Stock:              shares 

 

			
	Vesting Schedule:	  	Subject to the terms and conditions of the Restricted Stock Agreement, the Award shall vest and the Restrictions on the Shares shall lapse with respect to  1/3 of the Shares covered thereby on each of the first three anniversaries of the
Grant Date, provided in each case that Participant is an Eligible Individual (as defined in the Plan) at all times during the period beginning on the Grant Date and ending on the applicable vesting date.

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

									
	VERSO PAPER CORP.	 		 	PARTICIPANT
					
	By:	  	  
	 		 	Signature:	 	  

	Print Name:	  	  
	 		 	Print Name:	 	  

	Title:	  	  
	 		 		 	
					
	Address:	  	6775 Lenox Center Court	 		 	Address:	 	  

		  	Suite 400	 		 		 	  

		  	Memphis, TN 38115-4436	 		 		 	

 EXHIBIT A 
 TO 
 RESTRICTED STOCK AWARD GRANT NOTICE 
 RESTRICTED STOCK AWARD AGREEMENT 
 Pursuant to the Verso Paper Corp. 2008 Incentive Award Plan, as amended from time to time (the “Plan”), and the Restricted Stock Award Grant Notice (the “Grant Notice”) to which this Restricted Stock Award
Agreement (this “Agreement”) is attached, Verso Paper Corp., a Delaware corporation (the “Company”), has granted to Participant that number of shares of Restricted Stock set forth in the Grant Notice. 
 ARTICLE I. 
 GENERAL 

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

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

 (c) “Involuntary Termination” shall mean Participant’s Termination of Service due to: 
 (i) a material reduction in Participant’s authorities or duties (not including a change in title, provided that such authorities and duties are
similar and are performed in the same functional area) following a Change in Control, as compared to Participant’s authorities and duties with the Company or its Subsidiaries immediately prior to such Change in Control; 
 (ii) any material reduction in Participant’s annual base salary in effect immediately prior to a Change in Control, except for any broad based
salary reduction affecting employees of the Company who are similarly situated to Participant; or 
 (iii) a material reduction in the
overall value of Participant’s target bonus, profit sharing and other incentive compensation opportunities in effect immediately prior to a Change in Control, except for any broad based bonus, profit sharing, or other incentive compensation
reduction affecting employees of the Company who are similarly situated to Participant. 
 (d) “Termination of Service”
shall mean: 
 (i) As to a Consultant, the time when the engagement of a Participant as a Consultant to the Company or a Subsidiary is
terminated for any reason, with or without Cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where the Participant simultaneously commences or remains in employment or service with the
Company or any Subsidiary. 
 (ii) As to a Non-Employee Director, the time when a Participant who is a Non-Employee Director ceases to be a
Director for any reason, including, without limitation, a termination by resignation, removal or failure to be elected, death or retirement, but excluding terminations where the Participant simultaneously commences or remains in employment or
service with the Company or any Subsidiary. 
 (iii) As to an Employee, the time when the employee-employer relationship between a
Participant and the Company or any Subsidiary is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement, or an Involuntary Termination, but excluding terminations where the
Participant simultaneously commences or remains in employment or service with the Company or any Subsidiary. 
 The Administrator, in its sole discretion,
shall determine the effect of all matters and questions relating to Terminations of Service, including, without limitation, the question of whether a Termination of Service resulted from a discharge for cause and all questions of whether particular
leaves of absence constitute a Termination of Service. For purposes of the Plan, a Participant’s employee-employer relationship or consultancy relations shall be deemed to be terminated in the event that the Subsidiary employing or contracting
with such Participant ceases to remain a Subsidiary following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off). 
 1.2 Incorporation of Terms of Plan. The Award is subject to the terms and conditions of the Plan which are incorporated herein by reference. In
the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control. 
  

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 ARTICLE II. 
 AWARD OF RESTRICTED STOCK 
 2.1 Award of Restricted Stock. 
 (a) Award. In consideration of Participant’s past and/or continued employment with or service to the Company or one of its Subsidiaries, and
for other good and valuable consideration which the Administrator has determined exceeds the aggregate par value of the Common Stock subject to the Award (as defined below), as of the Grant Date, the Company issues to Participant the Award described
in this Agreement (the “Award”). The number of shares of Restricted Stock (the “Shares”) subject to the Award is set forth in the Grant Notice. Participant is an Employee, Director or Consultant of the Company or
one of its Subsidiaries. 
 (b) Purchase Price; Book Entry Form. The purchase price of the Shares, if any, is set forth on the Grant
Notice. At the sole discretion of the Administrator, the Shares will be issued in either (i) uncertificated form, with the Shares recorded in the name of Participant in the books and records of the Company’s transfer agent with appropriate
notations regarding the restrictions on transfer imposed pursuant to this Agreement, and upon vesting and the satisfaction of all conditions set forth in Section 2.2(d), the Company shall cause certificates representing the Shares to be issued
to Participant; or (ii) certificate form pursuant to the terms of Sections 2.1(c) and (d). 
 (c) Legend. Certificates
representing Shares issued pursuant to this Agreement shall, until all Restrictions (as defined below) imposed pursuant to this Agreement lapse or shall have been removed and the Shares shall thereby have become vested or the Shares represented
thereby have been forfeited hereunder, bear the following legend (or such other legend as shall be determined by the Administrator): 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING REQUIREMENTS AND MAY BE SUBJECT TO FORFEITURE UNDER THE TERMS OF A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED OWNER OF SUCH
SHARES, AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.” 
 (d) Escrow. The Secretary of the Company or such other escrow holder as the Administrator may appoint may retain physical custody of the
certificates representing the Shares until all of the restrictions on transfer imposed pursuant to this Agreement lapse or shall have been removed; in such event Participant shall not retain physical custody of any certificates representing unvested
Shares issued to him. Participant, by acceptance of the Award, shall be deemed to appoint, and does so appoint the Company and each of its authorized representatives as Participant’s attorney(s)-in-fact to effect any transfer of unvested
forfeited Shares (or Shares otherwise reacquired by the Company hereunder) to the Company as may be required pursuant to the Plan or this Agreement and to execute such documents as the Company or such representatives deem necessary or advisable in
connection with any such transfer. 
 (e) Delivery of Certificates Upon Vesting. As soon as administratively practicable after the
vesting of any Shares subject to the Award pursuant to Section 2.2(b), the Company shall, as applicable, either remove the notations on any Shares subject to the Award issued in book entry form which have vested or deliver to Participant a
certificate or certificates evidencing the number of Shares subject to the Award that have vested (or, in either case, such lesser number of shares as may be permitted 

  

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pursuant to Section 13.2 of the Plan). Participant (or the beneficiary or personal representative of Participant in the event of Participant’s
death or incapacity, as the case may be) shall deliver to the Company any representations or other documents or assurances required by the Company. The Shares so delivered shall no longer be subject to the Restrictions hereunder. 
 2.2 Restrictions. 
 (a)
Forfeiture. Any Award that is not vested as of the date of Participant’s Termination of Service shall thereupon be forfeited immediately and without any further action by the Company. For purposes of this Agreement,
“Restrictions” shall mean the restrictions on sale or other transfer set forth in Section 3.2 and the exposure to forfeiture set forth in this Section 2.2(a). 
 (b) Vesting and Lapse of Restrictions. Subject to Sections 2.2(a) and 2.2(c), the Award shall vest and the Restrictions shall lapse in accordance
with the vesting schedule set forth on the Grant Notice. The number of Shares subject to vesting on each vesting date shall be rounded down to the nearest whole number, provided that on the final vesting date all Shares that have not been eligible
to become vested on any prior vesting date(s) because of the foregoing rounding convention shall be subject to vesting on the final vesting date. 
 (c) Change in Control; Death or Disability. Notwithstanding Sections 2.2(a) and 2.2(b): 
 (i) Unless otherwise provided by
the Administrator in accordance with the terms of the Plan (including, without limitation, Section 13.2(b) of the Plan), and except as otherwise provided below, in the event of a Change in Control, the Company shall, in accordance with
Section 13.2(b)(ii) of the Plan, require that the Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or that the Award be substituted for by similar rights or awards covering the stock of the successor
or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares, and the Award shall continue to be eligible to become vested in such amounts and at such times as are set forth in the
Grant Notice, subject to the foregoing adjustments. 
 (ii) In the event of Participant’s death or Disability, or in the event of
Participant’s Termination of Service by the Company without Cause on or prior to the consummation of a Change in Control, the Award shall become vested and the Restrictions shall lapse with respect to a pro-rata percentage of the Shares subject
to the Award (determined on a quarterly basis and based on the number of completed quarters that have elapsed from the most recent vesting date through the date of Termination of Service). 
 (iii) In the event of Participant’s Termination of Service within six months immediately following a Change in Control (A) by the Company
without Cause or (B) by Participant by reason of an Involuntary Termination, the Award shall become vested and the Restrictions shall lapse with respect to all of the Shares subject to the Award. 
 (d) Tax Withholding. Notwithstanding any other provision of this Agreement (including, without limitation, Section 2.1(b) hereof), no new
certificate shall be delivered to Participant or his legal representative unless and until Participant or Participant’s legal representative shall have paid to the Company the full amount of all federal, state and local withholding or other
taxes applicable to the taxable income of Participant resulting from the grant of Shares or the lapse or removal of the Restrictions. Such payment shall be made by deduction from other compensation payable to Participant or in such other form of
consideration acceptable to the Company which may, in the sole discretion of the Administrator, include: 
 (i) Cash or check; 

 

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 (ii) Shares of Common Stock held for such period of time as may be required by the Administrator in
order to avoid adverse accounting consequences and having a Fair Market Value on the date of delivery equal to the minimum amount required to be withheld by statute; or 
 (iii) Other property acceptable to the Administrator (including, without limitation, through the delivery of a notice that Participant has placed a market sell order with a broker with respect to shares of Common
Stock for which the Restrictions are then subject to lapse, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of its withholding obligations, provided that payment of
such proceeds is then made to the Company upon settlement of such sale). 
 The Company shall not be obligated to deliver any new certificate representing
Shares to Participant or Participant’s legal representative or enter such Shares in book entry form unless and until Participant or Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all
federal, state and local taxes applicable to the taxable income of Participant resulting from the grant of the Award or the issuance of Shares hereunder. 
 (e) Conditions to Delivery of Shares. Subject to Section 2.1, the Shares deliverable under this Award may be either previously authorized but unissued shares of Common Stock or issued shares of Common
Stock that have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any Shares under this Award prior to fulfillment of all of the following conditions:

 (i) The admission of such Shares to listing on all stock exchanges on which the Common Stock is then listed; 
 (ii) The completion of any registration or other qualification of such Shares under any state or federal law or under rulings or regulations of the
Securities and Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable; 
 (iii) The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its absolute discretion, determine to be necessary or advisable; 
 (iv) The receipt by the Company of full payment for such Shares, including payment of any applicable withholding tax; and 
 (v) The lapse of such reasonable period of time following the grant of this Award as the Administrator may from time to time establish for reasons of
administrative convenience. 
 2.3 Consideration to the Company. In consideration of the grant of the Award by the Company,
Participant agrees to render faithful and efficient services to the Company or any Subsidiary. Nothing in the Plan or this Agreement shall confer upon Participant any right to continue in the employ or service of the Company or any Subsidiary or
shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the 

  

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services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written
agreement between the Company or a Subsidiary and Participant. 
 ARTICLE III. 
 OTHER PROVISIONS 
 3.1 Tax Withholding and Section 83(b) Election.
The Company shall be entitled to require a cash payment by or on behalf of Participant and/or to deduct from other compensation payable to Participant any sums required by federal, state or local tax law to be withheld with respect to the grant or
vesting of the Award or the lapse of the Restrictions hereunder. Participant understands that Section 83(a) of the Internal Revenue Code taxes as ordinary income the difference between the amount, if any, paid for the Shares and the Fair Market
Value of such Shares at the time the Restrictions on such Shares lapse. Participant understands that, notwithstanding the preceding sentence, Participant may elect to be taxed at the time of the Grant Date, rather that at the time the Restrictions
lapse, by filing an election under Section 83(b) of the Code (an “83(b) Election”) with the Internal Revenue Service within 30 days of the Grant Date. In the event that Participant files an 83(b) Election, Participant shall
provide the Company a copy thereof prior to the expiration of such 30-day period. Participant understands that in the event an 83(b) Election is filed with the Internal Revenue Service within such time period, Participant will recognize ordinary
income in an amount equal to the difference between the amount, if any, paid for the Shares and the Fair Market Value of such Shares as of the Grant Date. Participant further understands that an additional copy of such 83(b) Election form should be
filed with his or her federal income tax return for the calendar year in which the date of this Agreement falls. Participant acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to the
Award hereunder, and does not purport to be complete. PARTICIPANT FURTHER ACKNOWLEDGES THAT THE COMPANY IS NOT RESPONSIBLE FOR FILING PARTICIPANT’S 83(b) ELECTION, AND THE COMPANY HAS DIRECTED PARTICIPANT TO SEEK INDEPENDENT ADVICE REGARDING
THE APPLICABLE PROVISIONS OF THE INTERNAL REVENUE CODE, THE INCOME TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY IN WHICH PARTICIPANT MAY RESIDE, AND THE TAX CONSEQUENCES OF PARTICIPANT’S DEATH. 
 PARTICIPANT HEREBY ASSUMES ALL RESPONSIBILITY FOR FILING PARTICIPANT’S 83(b) ELECTION AND PAYING ANY TAXES RESULTING FROM SUCH ELECTION OR FROM
FAILURE TO FILE THE 83(b) ELECTION AND PAYING TAXES RESULTING FROM THE LAPSE OF THE RESTRICTIONS ON THE UNVESTED SHARES. 
 PARTICIPANT
UNDERSTANDS THAT PARTICIPANT MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF PARTICIPANT’S PURCHASE OR DISPOSITION OF THE SHARES AND PARTICIPANT REPRESENTS THAT PARTICIPANT IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. 
 3.2 Restricted Stock Not Transferable. No Shares or any interest or right therein or part thereof shall be liable for the debts, contracts or
engagements of Participant or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means, regardless of whether such disposition is voluntary or involuntary
or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this
Section 3.2 notwithstanding, with the consent of the Administrator, the Shares may be transferred to certain persons or entities related to Participant, including, but not limited to, members of Participant’s family, charitable
institutions or trusts or other entities whose beneficiaries or beneficial owners are members of Participant’s family or to such other persons or entities as may be expressly approved by the Administrator, pursuant to any such conditions and
procedures the Administrator may require. 
  

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 3.3 Rights as Stockholder. Except as otherwise provided herein, upon the Grant Date Participant
shall have all the rights of a stockholder with respect to the Shares, subject to the Restrictions herein, including the right to vote the Shares and the right to receive any cash or stock dividends paid to or made with respect to the Shares.

 3.4 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue to
serve as an employee or other service provider of the Company or any of its Subsidiaries. 
 3.5 Governing Law. The laws of the State
of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. 
 3.6 Conformity to Securities Laws. Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with
all provisions of the Securities Act and the Exchange Act and any and all rules and regulations promulgated thereunder by the Securities and Exchange Commission. Notwithstanding anything herein to the contrary, the Plan shall be administered, and
the Award is granted, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations. 
 3.7 Amendment, Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or
partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board, provided that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or
termination of this Agreement shall adversely effect the Award in any material way without the prior written consent of Participant. 
 3.8
Notices. Notices required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to
Participant to his address shown in the Company’s records and to the Company at its principal executive office. 
 3.9 Successors and
Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein
set forth, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns. 
 3.10
Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Award and this Agreement shall be subject to
any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the
extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. 
 3.11 Entire Agreement. The Plan, the Grant Notice and this Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to
the subject matter hereof. 
  

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 3.12 Limitation on Participant’s Rights. Participation in the Plan confers no rights or
interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of
itself, has any assets. Participant shall have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Shares issuable hereunder. 
  

 A-8Second Amended and Restated Agency Agreement

 EXHIBIT 10.58 
 “*************” DENOTES MATERIAL THAT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 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

  

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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. 

  

	 	(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.

  

	 	(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

  

 5 

	 	 
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. 

  

	 	(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

  

 8 

	 	 
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). 
  

	 	(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

  

 9 

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

  

 10 

	 	 
************************************************************************************************ 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.

  

	 	(ii)	Direct Market Catalog Produced by Publisher. 

  

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

  

	 	(iii)	Certain Characteristics of Publisher Catalogs. 

  

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

  

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

  

	 	(C)	********************************************************************************************
******************************************************************************************** ********************************************************************************************
******************************************************************************************** 

  

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

  

 11 

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

  

	 	(E)	********************************************************************************************
******************************************************************************************** ********************************************************************************************
******************************************************************************************** 

  

	 	(F)	********************************************************************************************
******************************************************************************************** ********************************************************************************************
******************************************************************************************** 

  

	 	(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. 

  

	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.

  

 14 

	 	 
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. 

  

	 	(d)	 Diamond shall indemnify and hold harmless Publisher, and its officers, directors, shareholders, employees, agents, licensees, representatives,

  

 15 

	 	 
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

  

 16 

	 	 
necessary to maintain compliance with any applicable federal, state or local laws or regulations or any rules or regulations of any stock exchange. 

  

	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:	 	

 SCHEDULE A-1 
 DISTRIBUTION CHANNELS SERVICED BY THE U.K. FACILITY 
 BUT NOT LOCATED WITHIN THE UNITED KINGDOM 
 [****] 
 [12 pages of Schedule A-1 have been omitted and filed separately with the 
 Securities and Exchange Commission pursuant to a request for confidential 
 treatment.] 

 SCHEDULE A-2 
 TERMS OF SALE TO DIAMOND FOR U.K. PRODUCT 
 These Terms of Sale
regarding U.K. Product purchased by Diamond from Publisher shall be deemed fully incorporated in the Second Amended and Restated Agency Agreement (“Underlying Agreement”) to which this Schedule “A” is attached, and these Terms of
Sale and the Underlying Agreement shall herein be collectively referred to as the “Agreement”. Unless expressly provided to the contrary herein, all terms shall have the same respective meanings as set forth in the Underlying Agreement and
to the extent that any provision of these Terms of Sale conflicts with any provision of the Underlying Agreement, the Underlying Agreement shall control. 
  

	1.	TERMS AND CONDITIONS: 

  

	 	a.	Purchase of U.K. Product: Diamond shall purchase on a non-returnable, firm-sale basis from Publisher all U.K. Product (as defined in the Underlying Agreement)
pursuant to the terms and conditions contained herein. 

  

	 	b.	Distribution of U.K. Product: Diamond agrees that all U.K. Product purchased hereunder shall be for Diamond’s distribution solely to U.K. Distribution
Channels, subject to all the terms and conditions of the Underlying Agreement, and that Diamond shall not sell U.K. Product outside of any U.K. Distribution Channels. 

  

	 	c.	Non-returnable: All sales of U.K. Product are on a firm basis and are final. Accordingly, all items of U.K. Product purchased from Publisher by Diamond are
non-returnable. 

  

	2.	PRICING AND PAYMENT: 

  

	 	a.	Pricing: For each U.K. Product purchased by Diamond, Diamond shall pay to Publisher (in U.S. Currency), a sum (the “Purchase Price”) equal to
*********************** for each such copy. No set-offs, fees, charges or deductions of any kind may be taken in the determination of such payment to Publisher, except for adjustments for shortage and damage claims of Diamond pursuant to Sections
3(c) and 3(d) of this Schedule A. In the event that Diamond sets a retail price for any U.K. Product that is not greater than the Purchase Price, Publisher shall have the right to purchase such U.K. Product from Diamond at the Purchase Price FOB
UK. 

  

	 	b.	Payment: Diamond will render a statement of account to Publisher within ********* Days following each Fiscal Week for all U.K. Product purchased by Diamond
during such Fiscal Week. Diamond will remit payment to Publisher by wire transfer for each Fiscal Week not later than ****** days after the date during such Fiscal Week that Publisher has previously set as the On-Sale Date with respect to such U.K.
Product, in an amount equal to the Purchase Price for the relevant Fiscal Week. 

 SCHEDULE B 
 DIRECT MARKET CUSTOMERS — (schedule B consists of two parts) 
  

	 	i.	 The original schedule B from the July 19th 2002 Letter Amendment to the Agency Agreement between Marvel and Diamond dated April 24th 2001. 

 [****] 
  

	 	    	[116 pages of Schedule B-i have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment]

  

	 	ii.	Supplemental listing as of June 4, 2003, the date of execution of this Second Amended and Restated Agency Agreement. 

 [****] 
  

	 	    	[22 pages of Schedule B-ii have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment]

 SCHEDULE C 
 BOOK MARKET EXCLUSIVE CUSTOMERS 
  

							
	 Cust No
	  	Parent No	  	 Cust Name
	  	State

 [****] 
 [5 pages of Schedule C have been omitted and filed separately with the Securities 
 and Exchange Commission pursuant to a request for confidential treatment.]

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