Marvel Entertainment Inc. would have to pay the Walt Disney Co. a $140 million termination fee if it decides to cancel the proposed merger with Disney, according to a securities filing, Friday.
Reuters reports that the $4 billion merger deal, announced Monday, contains termination rights for Disney and Marvel, including Marvel's right to pursue a "superior deal," with another studio.
However, the comic book company has agreed not to look for other merger offers, the Securities and Exchange Commission filing by Marvel said.
The agreement also stipulates that Marvel Chief Executive Isaac Perlmutter could not resign for "good reason" over a change in his duties and still collect severance pay.
The merger agreement also states that Perlmutter will answer to Disney Chief Executive Bob Iger. Perlmutter will receive a $4.3 million bonus for 2009 if the deal goes through.
Disney executives expect to close the deal by the year's end.