Exhibit 10.54
REBOOT
Deal Memorandum
Date: May 3, 2000
"Agent for Licensor" American Champion Marketing Group, Inc.
1694 The Alameda, Suite #100
San Jose, CA 95126
Contact: Joy Tashjian
Phone: 408-288-8098 Fax: 408-288-8098
"Licensee" Irwin Toy Limited
43 Hanna Avenue
Toronto, ON M6K1X6
Contact: Francess Wells Cunningham
Phone: 416-583-4548 Fax: 415-333-3257
Property: Shall mean all characters, characterizations, names, scenes,
locales, themes and storylines, including all copyright material,
trademarks, (pending, registered or unregistered) now existing, or
hereafter coming into existence and associated with the television series
known as "ReBoot" but excluding Imax ReBoot Ridefilms (Imax Rights) or
features produced under the Maxframe Joint Venture.
Initial Term: Two (2) years and six months commencing July 1, 2000 and
expiring on December 31, 2002.
Renewal Option: If the Licensee is in full compliance with all the terms and
conditions of the Agreement for the Initial Term and the Licensee shall have
made royalty payments to the Licensor of no less than US$(deleted) or
US$(deleted) as the case may be in respect of the Initial Term as act forth
in the Minimum Guarantee Clause, then the Licensee shall have the sole right
to extend the Agreement for an additional term of three years at the same
royalty rates as apply for the Initial Term. If Licensee meets the
requirements and exercises Its right to extend the term of the Agreement the
Licensee shall in respect of the renewal term, pay the Licensor a
nonrefundable Advance of US$(deleted), with a Minimum Guarantee of US(deleted)
if the television episodes of the Property "ReBoot" are aired in all of the
following countries by December 31, 2002: U.K., France, Germany, Italy and
Spain, and US$(deleted) if they are not aired.
Territory: Worldwide, excluding Japan.
Minimum Guarantee: US $(deleted) provided however that in the event that
television episodes of the Property "Reboot" are not aired in all of the
following countries: UK, France, Germany, Italy and Spain by December 31,
2002, the Minimum Guarantee shall be US $(deleted).
Advance: (i) US$(deleted) non-refundable advance against royalties due
upon the receipt of a fully- executed copy of this Deal Memorandum by
Licensee; and
(ii) Such amount by July 1, 2001, if required, which together with
US$(deleted) advance under (i) above and earned royalties paid up to June
30, 2001 would bring aggregate royalty and royalty advance payments up to
US$(deleted).
Balance Of Guarantee: Due sixty (60) days prior to the expiration of the
agreement if not previously earned and paid in royalties.
Royalty Rate: On North American sales where Irwin distributes directly to
retailers and consumers: X% of net sales for the first US$(deleted);
X% of net sales for the second US$(deleted); X% thereafter;
On International sales where Irwin markets through third party
distributors: X% of net sales
On F.O.B. sales: X% on the F.O.B. selling price for the first
US$(deleted); X% on the F.O.B. for the second US$(deleted); and
X% thereafter;
Grant of Right: Exclusive.
Licensed Articles Description: Action Figures; Vinyl Figures; Vehicles made
for Action Figures; Die-cast Vehicles; Plush Toys; Model Kits; Bendables;
Injection molding machines that create injected molded plastic figures
through a process of melting the plastic in the machine; Non-electronic
superballs, also known as high bounce balls, with a figure or disc embedded
inside; Non-electronic or Interactive board games and jigsaw puzzles but,
specifically excluding trading card games or any form of 3- D puzzles; Toy
carrying cases but specifically excluding all other types of bags or luggage.
Reporting and Remittances: Thirty (30) days following the end of
each quarterly Calendar Period.
Marketing Date: Within three (3) months of the Commencement Date.
Post Expiration Disposal Period: Ninety (90) days
Trademark and Copyright Notices: ReBoot(TM) and (C) (year) Mainframe
Entertainment, Inc. All Rights Reserved.
Submission of Production Samples: Three (3) production samples of each
finished Article, and each item of promotional and packaging
material (i) upon Packing to Licensor: completion of first production
and (ii) annually thereafter.
Reservation Rights: Licensor reserves to itself, without restriction,
all rights with respect to Articles not specifically granted hereunder,
including but not limited to premiums and giveaways.
Advertising: Licensee agree to spend a minimum of (deleted) U.S.
Dollars (U.S.$deleted) on advertising and promotion in respect of the
Initial Term.
Liability Insurance: Ten Million Canadian Dollars (CDN$10,000,000)
combined single limit with a deductible amount not in excess of Twenty Five
Thousand Canadian Dollars (CDN$25,000) for each single occurrence for
bodily injury and/or for property damage.
Agreed To And Approved By:
Licenser: Licensee:
Mainframe Entertainment, Inc. Irwin Toy Limited
Per: /s/ Ian Pearson Per: /s/ Francess Wells-Cunningham
Title: CEO / President Title: Vice President - Marketing
Date: 15th May, 2000 Date: May 3, 2000
Agent:
American Champion Marketing Group, Inc.
Per: /s/ Joy M. Tashjian
Title: CEO / President
Date: 9th May, 2000
