EXHIBIT 10.21
RICHARD R. NEITZ-TERM SHEET
TITLE- PRESIDENT-RETAIL PRODUCTS DIVISION
o $250,000 ANNUAL SALARY; 3 YEAR TERM SUBJECT TO SEPARATION AND NON-COMPETE
TERMS SIMILAR TO THAT OF PRIOR EMPLOYMENT CONTRACT WITH DSI.
o 100,000 NQSO STOCK OPTIONS AT THE CLOSING PRICE ON THE DAY MR. NEITZ
COMMENCES EMPLOYMENT WHICH IS OCTOBER 1,1999; OPTIONS WILL VEST RATABLY
OVER A THREE YEAR PERIOD.
o BONUS PROGRAM-IF RETAIL EARNINGS BEFORE TAXES EXCEED $1.5 MILLION AND $2.5
MILLION IN EACH OF THE FISCAL YEARS ENDED JULY 31,2000 AND 2001
RESPECTIVELY, THEN MR. NEITZ WILL RECEIVE A BONUS EQUIVALENT TO 2% OF ALL
SUCH NET EARNINGS BEFORE TAXES. ONCE $2.5 MILLION OF EARNINGS HAVE BEEN
OBTAINED IN ANY FISCAL YEAR, THE MINIMUM TO EARN A BONUS SHALL BE
INCREASED 20% A YEAR THEREAFTER.
o MOVING EXPENSES-ALL OUT-OF-POCKET MOVING EXPENSES. TWO BEDROOM APARTMENT
WHILE RELOCATING FOR A PERIOD NOT TO EXCEED 6 MONTHS.
o VACATION- 3 WEEKS ANNUALLY, EARNED RATABLY OVER THE EMPLOYMENT TERM, AND
NOT TO BE CARRIED FORWARD TO FUTURE YEARS.
o HEALTH BENEFITS-SAME AS ALL EXECUTIVE OFFICERS.
o CAR ALLOWANCE- $500 PER MONTH
o LIFE INSURANCE-PICK UP PAYMENTS ON INSURANCE CURRENTLY BEING PAID BY DSI.
o MEMBERSHIP TO TOY MANUFACTURERS OF AMERICA
o CHANGE IN CONTROL- IF THERE IS A SIGNIFICANT CHANGE IN STOCK OWNERSHIP OR
BOARD OF DIRECTORS THEN OPTIONS VEST IMMEDIATELY.
o TRAVEL-1ST CLASS AND MAY TAKE WIFE ONE TIME ANNUALLY 1ST CLASS TO HONG
KONG.
o ATTORNEY FEES EXCEEDING $10,000 REGARDING SEPARATION AGREEMENT WITH DSI.
o BOARD SEAT.
o MOBIL PHONE USAGE SIMILAR TO EXISTING SERVICE FOR EXECUTIVES.
o DEFINITIVE AGREEMENT TO BE NEGOTIATED.
o COMPANY WILL HOLD MR. NEITZ HARMLESS AND INDEMNIFY ON ANY ACTION BY DSI
TOYS AS IT PERTAINS TO MR. NEITZ AND PLAY BY PLAY TOGETHER.
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RAYMOND BRAUN RICHARD R. NEITZ
PRESIDENT AND CHIEF OPERATING OFFICER
OCTOBER 5, 1999
