Harvey Weinstein reportedly had a section in his employment contract that required him to pay his company a sum of money for each “instance” of “misconduct.”
The disgraced Hollywood producer’s employment contract with The Weinstein Company was released per a judge’s order, who is presiding over the company’s bankruptcy filing, according to The Hollywood Reporter.
The judge also reportedly allowed a lawsuit filed by six women who’ve claimed sexual misconduct against the media mogul to move forward. The women have reportedly claimed that the company knew of Weinstein’s alleged behavior.
“TWC and other defendants not only knew about but endorsed Mr. Weinstein’s conduct,” attorney Jeff Waxman, who represents the plaintiffs, said in court, according to Variety. The class-action lawsuit was put on hold after the company reported bankruptcy, the outlet said.
A "Code of Conduct" was reportedly included in the employment agreement.
“You and the Company recognize that, in addition to being indemnified for the amount of payments the Company is obligated to make as a result of your misconduct, such misconduct can cause significant damage to the Company which is difficult or impossible to measure,” the agreement said, according to The Hollywood Reporter. “Accordingly, if your misconduct results in the Company making an Obligated Payment to a person damaged by such misconduct, in addition to the indemnification set forth in subparagraph i.(a) above, you will pay the Company liquidated damages of $250,000 for the first such instance, $500,000 for the second such instance, $750,000 for the third such instance, and $1,000,000 for each such additional instance.”
The company argued against the employment agreement's release and of the portrayal of the section, Variety reported.
“There was no ratification,” attorney Karin DeMasi, who represents The Weinstein Company said, according to Variety. "There is no endorsement."
Also on Tuesday, Weinstein entered a not guilty plea at a New York courthouse, where he was arraigned on rape and criminal sex act charges.