Document:

Text
      marked by [ * * *] has been omitted pursuant to a Request for Confidential
      

    Treatment
      and was filed separately with the Securities and Exchange
      Commission.

    

    Douglas
      Deluca

    Chief
      Executive Officer

    PROELITE

    12121
      Wilshire Blvd., Ste 1001

    Los
      Angeles, California 90025

     

    
      	
            	RE:	
              ELITE
                XC

            

    

     

    Dear
      Doug:

     

    This
      will
      confirm the terms of the agreement between CBS Entertainment (“CBS”) and
      ProElite (“Supplier”) in connection with the production and licensing of 2-hour
      live world-class mixed martial arts fight programs (the “Event(s)”), as
      follows:

     

    CBS’
      obligations are contingent upon conclusion of an agreement between CBS and
      Supplier relating to a grant to CBS of additional warrants in
      ProElite.

     

    1. EVENT
      ORDER.

     

    1.1 Initial
      Order.
      CBS
      hereby orders four (4) 2-hour Events intended for live broadcast in primetime
      during a period of one year commencing upon the initial broadcast of the first
      Event hereunder (the “Initial Order”). CBS may order up to two (2) additional
      Events as part of the Initial Order by reasonable notice to Supplier. The
      broadcast date for the first Event shall be mutually determined by the parties.
      The broadcast date for subsequent Events shall be mutually determined; provided,
      however, that Supplier shall be given at least 75 days notice prior to any
      such
      broadcast date.

     

    1.2 Subsequent
      Orders.
      CBS
      shall have four (4) subsequent, consecutive annual options each exercisable
      the
      later of 45 days prior to the expiration of the Term or fourteen (14) days
      following the initial broadcast of the last Event produced in the prior year
      to
      order four (4) additional 2-hour Events hereunder. CBS may order additional
      Event(s) in each year by reasonable notice to Supplier.

     

    1.3 CBS
      shall
      have the right to order Events other than 2-hours in length. In which case,
      the
      license fee shall be negotiated in good faith based on a budget to be presented
      by Supplier, provided, however that license fees shall not exceed a cap of
      up to
      the following percentages: [***] of the 2-hour rate for 3-hour programs, [***]
      of the 2-hour rate for 1-hour programs.

     

    1.4 In
      addition to the Events, CBS may order derivative type programs (as part of
      the
      initial order for the year or otherwise during the Term) based on the Events
      (e.g., “behind-the-scenes”, “best-of, etc.). [***]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    2. PROGRAM
      LICENSE FEE.

     

    2.1 Initial
      Term.
      In
      connection with Events ordered for the Initial Order, CBS shall pay a flat,
      non-auditable license fee [***] per Event (the “License Fee”) provided that
      Supplier represents and warrants that the production value for each Event will
      be consistent with the production value of the programs that have been produced
      for Showtime, plus reasonable network enhancements (for example, announcer,
      additional cameras/jib) as requested by CBS . [***]

     

    2.2 Subsequent
      Years.
      In
      connection with Events ordered for subsequent years, the License Fee shall
      be as
      follows:

     

    Year
      2:
      [***] per Event

    Year
      3:
      [***] per Event

    Year
      4:
      [***] per Event

    Year
      5:
      [***] per Event

    

    2.3 Payment
      Schedule.
      The
      applicable License Fee shall be payable 1/3 upon Supplier’s commencement of
      pre-production; 1/3 upon completion of production; and the balance upon
      Supplier’s delivery of the Event (and all required elements as set forth in a
      separate document to follow).

     

    2.4 Pay
      or
      Play Commitment.
      Provided Supplier is ready, able and willing to deliver all Events ordered
      by
      CBS hereunder and provided Supplier is not in breach of this agreement, in
      the
      event that CBS elects not to broadcast an Event(s) ordered by CBS hereunder
      (other than for force majeure), CBS shall pay Supplier the applicable License
      Fee for any such Event(s) so ordered. Nothing herein shall be deemed to obligate
      CBS to broadcast any Event ordered hereunder, and CBS shall have discharged
      all
      of its obligations to Supplier hereunder by paying Supplier the applicable
      License Fee for any such Event.

     

    2.5 [***].

     

    Any
      rating bonus, as and if applicable, shall be payable by CBS to Supplier within
      60 days of CBS’ Network Broadcast of the applicable Event.

     

    3. PRODUCTION.
      Showtime or another CBS-approved entity to produce applicable Event(s). CBS
      to
      have approval over the auspices of production and production budgets, which
      approval will not be unreasonably withheld or delayed, and the parties agree
      that the production value for each Event will be consistent with the production
      value of the programs that have been produced for Showtime, plus reasonable
      Network enhancements (for example, announcer, additional cameras/jib) as
      requested by CBS. CBS shall have the right to require pre-taping of certain
      fights in order to gap-fill the live broadcast, which details will be agreed
      upon prior to each Event.

     

    4. Term.
      The
      Term shall commence on the date this agreement is executed and continue for
      a
      period of one year from the initial broadcast of the first Event hereunder,
      as
      may be extended on a year to year basis by the exercise of the applicable annual
      option. CBS shall have the greater of 120 days from the initial broadcast of
      the
      last Event ordered hereunder or the expiration of the Term to complete its
      repeat runs hereunder.

     

    
      
         

      

      
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    5. Territory.
      United
      States, its territories and possessions (excluding Puerto Rico) and
      Bermuda.

     

    6. Network
      Runs.
      CBS
      shall be entitled to take up to four (4) network broadcasts of each Event
      (“Network Runs”). The initial network broadcast shall be on CBS. Subsequent runs
      may be taken on CBS or another network owned and/or affiliated with CBS. The
      License Fee buys out 2 runs. [***].

     

    7. EXCLUSIVITY.

     

    7.1 The
      Events and all elements contained therein (including talent as set forth below)
      will be exclusive to CBS during the Term in the Territory.

     

    7.2 ProElite
      and EliteXC brands to be exclusive to CBS in broadcast television in the
      Territory during the Term.

     

    7.3 No
      other
      fight events permitted on any other broadcast network or premium cable
      (excluding Showtime) in the Territory whether under the ProElite, EliteXC brands
      or any other related or affiliated brand(s) (whether through ownership,
      partnership or otherwise). [***]

     

    7.4 [***]

     

    7.5 [***]

     

    7.6 [***].

     

    8. APPROVALS.
      CBS to
      have its customary creative, financial, production, budget, standard and
      practices and legal approval rights, which approval will not be unreasonably
      withheld or delayed and the parties agree that the production value for each
      Event will be consistent with the production value of the programs that have
      been produced for Showtime, plus reasonable network enhancements (for example,
      announcer, additional cameras/jib) as requested by CBS. In connection therewith,
      it is agreed that the venue for each event shall be mutually determined by
      the
      parties with the understanding that each Event shall be produced in a top United
      States media market. [***] Supplier and CBS shall have mutual approval over
      CBS’
initial press release relating to this agreement and the broadcast of the Events
      on CBS. Supplier agrees that such approval shall not be unreasonably withheld
      or
      delayed.

     

    9. [***]

     

    10. COMPLIMENTARY
      TICKETS.
      Supplier shall provide CBS with no less than [***] premium complimentary VIP
      tickets, with distribution and placement of seats to be approved by CBS. Special
      arrangements and accommodations will be made for CBS key executives and guests.
      CBS to have the right to purchase a reasonable number of additional premium
      tickets with distribution and placement to be approved by CBS.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    11. TALENT
      EXCLUSIVITY.
      [***]

     

    12. PRODUCTION/RESIDUAL/CLEARANCE
      COSTS.
      [***]

     

    13. [***]

     

    14. [***]

     

    15. DELIVERY.
      Timely
      delivery Fs of the essence hereunder. The Event(s) shall be delivered in
      accordance with CBS’ customary delivery requirements.

     

    16. [***]

     

    17. INSURANCE/INDEMNITY.
      Supplier agrees to defend and indemnify CBS from any and all third-party claims
      that arise out of or are based upon the Event (except to the extent such claims
      that arise out of or result from CBS’s breach of this Agreement). Supplier will
      obtain E & 0, General Liability, Worker’s Compensation, automobile and other
      insurance coverage for such length of time and in amounts sufficient for/to
      CBS
      and will name CBS as an additional insured on any such policies to the extent
      of
      Supplier’s indemnification obligations to CBS.

     

    18. NETWORK
      REVENUES.
      Supplier will have no right whatsoever to share in any revenues or proceeds
      (including any profits) derived from the exercise by the Network of any of
      the
      rights granted to it, including, without limitation, any revenues derived from
      any advertisers and sponsors.

     

    19. RIGHTS.
      Supplier represents and warrants that: (i) it exclusively owns and controls
      all right, title and interest in and to the Events and all ancillary and
      subsidiary rights therein; and (ii) it has the right to grant CBS the
      rights granted herein.

     

    20. CONFIDENTIALITY.
      Supplier agrees that it will keep the terms of this Agreement as confidential.
      To the extent Supplier is or becomes legally obligated to disclose the terms
      of
      this Agreement, Supplier will work in good faith to seek protective order or
      confidential treatment or other remedy to prevent such required disclosure
      and
      to the extent necessary, will only disclose information which is legally
      required to be provided.

     

    21. CREDITS.
      Provided that Supplier is not in breach of this agreement and subject to CBS’
then-current network policy, CBS has approved a production company logo credit
      for Supplier in the end credits. All other credits shall be per CBS’ customary
      practice and subject to reasonable approval on a case-by-case
      basis.

     

    22. OTHER
      TERMS.
      All
      other terms shall be per CBS standard long-form agreement which shall include
      CBS’ customary provisions, including, without limitation force majeure,
      insurance, breach, promotional and marketing rights, government regulations,
      notice, program standards and practices, etc. to be negotiated in good faith
      by
      the parties within CBS’ customary parameters.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              ACCEPTED
                AND AGREED:

               

              PROELITE

               

               

              By:
                /s/
                Douglas
                DeLuca                                              
                

              Name:
                Douglas DeLuca

              Title:
                CEO

            	
               

               

              CBS
                ENTERTAINMENT

               

               

              By:
                /s/
                Deborah
                Barak                                             
                

              Name:
                Deborah Barak

              Title:
                Executive V.P.

            

    

     

    
      
         

      

      
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    [***]

     

     

     

    
      
         

      

      
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    [***]

     

    
 

    
      
         

      

      
        7CODE
      OF ETHICAL CONDUCT

    OF

    NNRF,
      INC.

    

    Preface

    

    The
      honesty, integrity and sound judgment of principal executive and financial
      officers of NNRF, Inc. ("the Company") is fundamental to the reputation and
      success of the Company. While all employees, officers, and directors are
      required to adhere to this Code of Ethics, the professional and ethical conduct
      of our principal executive and financial officers is essential to the proper
      function and success of the Company. 

    

    Our
      principal executive and financial officers hold an important and elevated role
      in our corporate governance. These individuals are key members of the management
      team, who are uniquely capable and empowered to ensure that the interests of
      the
      Company stakeholders (including stockholders, employees, collaborators and
      suppliers) are appropriately balanced, protected and preserved. Such persons
      fulfill this responsibility by prescribing and enforcing the policies and
      procedures employed in the Company's business and financial operations.

    

    Principal
      Executive and Financial Officers Code of Ethical Conduct

    

    As
      a
      result, principal executive and financial officers of the Company performing
      senior executive, accounting, audit, financial management, or similar functions
      must: 

    

    Act
      with
      honesty and integrity, avoiding actual or apparent conflicts of interest in
      personal and professional relationships except as otherwise disclosed, approved
      and determined to be in the best interests of the Company and its stockholders;
      

    

    As
      is
      required and/or necessary to conduct their duties, provide colleagues with
      information that is accurate, complete, objective, relevant, timely, and
      understandable;

    

    Comply
      with applicable laws, rules, and regulations of federal, state, and local
      governments (both Unites States and foreign) and other appropriate private
      and
      public regulatory agencies, including, without limitation, with regard to all
      mandatory public disclosures; 

    

    Act
      in
      good faith, with due care, competence, and diligence, without misrepresenting
      material facts or allowing independent judgment to be subordinated;

    

    Respect
      the confidentiality of information acquired in the course of employment;

    

    Be
      accountable for adherence to this Code of Ethics and otherwise proactively
      promote ethical and honest behavior within the workplace, and 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Promptly
      report violations of this Code of Ethics to senior management or, as applicable,
      the board of directors of the Company, and if, necessary, to outside counsel,
      as
      a last resort should earlier attempts to redress such violations
      fail.

    

    All
      principal executive and financial officers are expected to adhere to this Code
      of Ethics at all times. The board of directors of the Company shall have the
      sole and absolute discretionary authority to approve any deviation or waiver
      from this Code of Ethics. Any waiver (and the grounds for such waiver) for
      a
      principal executive or financial officer of, or an amendment to, this Code
      of
      Ethics shall be disclosed as required by applicable Securities and Exchange
      Commission rules. 

     

    ADOPTED
      by the board of directors on March 14, 2008.

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