**Exhibit 10.4**

 

July 14, 2005

 

 

JohnSimonelli

GraymarkProductions, Inc.

101North RobinsonSuite 920Oklahoma City, OK 73102

 

DearJohn:

 

Reference ismade to that certain short-form agreement between Image Entertainment, Inc. (“Image”)and Graymark Productions, Inc. (“Graymark”), dated as of July         2005(the “Agreement”).  Although we have notyet executed a long-form agreement or decided upon a vehicle for the venture,please note that Image is prepared to accept and finance the film “***The Hunt***” (the “Program”) pursuantto the Agreement, under the following terms and conditions:

 
| Total Budget:         |   | Approximately Four Hundred Twenty Seven Thousand Seventy-Nine Dollars  ($427,079). Image shall finance Two Hundred Thirteen Thousand Five Hundred  Thirty-Nine Dollars and Fifty Cents ($213,539.50) of the total budget.  Payment of the $213,539.50 shall be per the terms of the Agreement. |
|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                           |
| Profit Participation: |   | For this Program, Image’s back-end profit participation in all  revenue streams under the Agreement shall be 35%.                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                           |
| Copyright Ownership:  |   | For this Program, Image’s copyright ownership percentage shall be  35%.                                                                                                                                                                                                                   |
|                  |   |                                                                                                                                                                                                                                                                                           |
| All Other Terms:      |   | As per the Agreement                                                                                                                                                                                                                                                                           |

 

If the abovemeets with your approval, please have your client sign below.  Thank you.

 
|   | Best regards,                                                  |
|--------|----------------------------------------------------------------|
|   |                                                           |
|   |                                                           |
|   | Dennis  Hohn Cho, Esq.                                         |
|   | Senior  Vice President, Business Affairs & General Counsel |

 

**THE ABOVE IS ACKNOWLEDGED AND AGREED.**

 

**GRAYMARK PRODUCTIONS, INC.**

 

 
| ** **              | ** ** |
|-------------------------|------------|
| **By:  John Simonelli** |
| **Title:**              |

 

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