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Marx Toys And Entertainment Corp. Granted Injunctive Relief
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SEBRING, Ohio--(BUSINESS WIRE)--Aug. 18, 2003--Today, Marx Toys And Entertainment Corp. (OTCBB: MRXT) announced that on August 14, 2003 an Order with injunctive relief was entered in the Superior Court of New Jersey (Docket No. C242-03), against United Internet Technologies (UIT), a division of United Leisure Corporation (Pinksheets: UTDL). The Order also subjects defendants Brian Shuster and Robert Lomonaco to the restraints entered by the Court.
The order provides that pending a hearing scheduled for August 25, 2003, UIT is temporarily restrained from entering into another Licensing agreement for the utilization of the IM buddies technology. Further, the Order indicates that attorney Gary Mason of Manalapan, New Jersey agreed that he would not perform any legal work involving Marx Toys. Mr. Mason had previously represented Marx Toys and then performed legal work for UIT as an adversary of Marx. (Mr. Mason did not know of UIT before performing corporate work for Marx).
By way of background, Marx entered into a Licensing Agreement with UIT on April 1, 2003, which Agreement gave Marx the exclusive right to market the IM Buddy product. Marx paid UIT an initial $75,000 in connection therewith. The Agreement calls for payments in excess of $1,000,000 over the next three years.
"In late July, it came to our attention that UIT was attempting to enter into negotiations with a company other than MARX," stated Steve Wise Marx's CEO. Thereafter, UIT indicated that the License Agreement was canceled, which cancellation was without basis, false, and is rejected by Marx in its entirety. Given UIT's conduct, Marx filed the Law Suit in Superior Court and applied for emergent relief. After a hearing, the court entered temporary injunctive relief against UIT and its principal. That Order was entered over the objection of UIT; then represented by Gary Mason.
The release issued this morning by UIT violates the purpose of the previously filed law suit and is an act of baseless defiance of its obligations under the License Agreement. Attorneys for Marx are thus seeking additional legal relief, including the appointment of a receiver for UIT so as to ensure that said company complies with its obligations under the License Agreement.
About Marx Toys And Entertainment Corp.
Marx Toys And Entertainment Corp. manufactures and markets interactive toys and reissued collectible toys, along with classic games, playsets and ride along toys. Marx's vintage originals are highly collectible amongst hobby enthusiasts. Marx branded toys are sold at more than 400 toy and hobby retailers across the U. S. and has a rich history dating back to 1928. To read more on this history, visit marxtoys.com. In late July, Marx acquired a software company, AZtor Corporation. More info is at aztor.com
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Marx Toys And Entertainment Corp. takes no obligation to update or correct forward-looking statements.
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