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EXHIBIT 4.1    
    

STEWART & STEVENSON SERVICES, INC.  

 AMENDED AND RESTATED

1996 DIRECTOR STOCK PLAN  

 April 8, 2002  

TABLE OF CONTENTS  

	 
	 	Page

	ARTICLE I. PURPOSE	 	B-3
	ARTICLE II. ELIGIBILITY	 	B-3
	ARTICLE III. STOCK SUBJECT TO THE PLAN	 	B-3
	ARTICLE IV. DIRECTOR STOCK AWARDS	 	B-3
	ARTICLE V. TERMS, CONDITIONS AND FORM OF OPTIONS	 	B-4
	 	Section 5.1 Non-Statutory Stock Options	 	B-4
	 	Section 5.2 Option Grant Dates	 	B-4
	 	Section 5.3 Transferability	 	B-4
	 	Section 5.4 Vesting and Term of Option	 	B-4
	 	Section 5.5 Change of Control	 	B-4
	 	Section 5.6 Manner of Exercise	 	B-5
	 	Section 5.7 Termination of Directorship	 	B-5
	ARTICLE VI. OPTION PRICE	 	B-5
	ARTICLE VII. VALUATION OF STOCK	 	B-5
	ARTICLE VIII. NO RIGHT TO CONTINUE AS A DIRECTOR	 	B-6
	ARTICLE IX. ADJUSTMENT TO STOCK	 	B-6
	ARTICLE X. EFFECTIVE DATE	 	B-6
	ARTICLE XI. AMENDMENT OF THE PLAN	 	B-6
	ARTICLE XII. USE OF PROCEEDS	 	B-6
	ARTICLE XIII. COMPLIANCE WITH APPLICABLE LAWS	 	B-6
	ARTICLE XIV. GOVERNING LAW	 	B-6
	ARTICLE XV. SUCCESSORS	 	B-6

STEWART & STEVENSON SERVICES, INC.

AMENDED AND RESTATED 1996 DIRECTOR STOCK PLAN  

ARTICLE I. PURPOSE 

        The
purpose of this Amended and Restated 1996 Director Stock Plan (the "Plan") of Stewart & Stevenson Services, Inc. (the "Company") is to encourage ownership in the
Company by outside directors of the Company whose continued services are considered essential to the Company's continued progress, to provide them with a further incentive to continue as directors of
the Company, and to increase the value of the Company. 

ARTICLE II. ELIGIBILITY 

        Each
director of the Company is eligible to participate in the Plan, unless he or she is an officer or employee of the Company or any subsidiary of the Company ("Eligible Director"). 

ARTICLE III. STOCK SUBJECT TO THE PLAN 

        The
total number of the Company's authorized but unissued shares of common stock, without par value, ("Stock") with respect to which Director Stock Awards and options may be granted
shall not exceed in the aggregate 350,000 shares. The class and aggregate number of shares of Stock that may be subject to Director Stock Awards and options granted under the Plan shall be subject to
adjustment in accordance with Article IX. In connection with the issuance of shares of Stock under the Plan, the Company may utilize treasury shares or authorized but unissued shares. If any
Director Stock Award or option under the Plan shall expire or terminate for any reason without having been exercised in full or if any Director Stock Award or option shall be forfeited, the shares
subject to the unexercised or forfeited portion of such award or option shall again be available for purposes of the Plan. 

ARTICLE IV. DIRECTOR STOCK AWARDS 

        On
the date of each annual meeting of the Company's shareholders ("Annual Meeting") after the Effective Date (within the meaning of Article X), the Company will, without cost to
the grantee and without the exercise of the discretion of any person or persons, award and issue to each Eligible Director who is elected to serve a term as a director at each such meeting and to each
Eligible Director who is serving as a director for a term that continues after such meeting, that number of shares of Stock (rounded down to the nearest whole share) determined by dividing
(i) the sum of $15,000 by (ii) the fair market value (as determined in Article VII) of a share of Stock on the date of such meeting. If an Eligible Director is elected or
appointed to serve a term as a director on a date other than the date of the Company's Annual Meeting and has not otherwise received a Director Stock Award for such year, the Company will, without
cost to the grantee and without the exercise of the discretion of any person or persons, award and issue to such Eligible Director a prorated Director Stock Award equal to the product of
(X) the quotient of $15,000 divided by the fair market value (as determined in Article VII) of a share of Stock on the date of such election or appointment, multiplied by (Y) the
quotient of the number of days remaining until the Company's next Annual Meeting divided by 365 days. With respect to each Director Stock Award, the Eligible Director shall pay to the Company
all amounts, if any, that the Company is required to collect and remit to the Internal Revenue Service or any other taxing authority as a result of such award. 

ARTICLE V. TERMS, CONDITIONS AND FORM OF OPTIONS 

        Each
option granted under this Plan shall be evidenced by a written agreement that shall be subject to the following terms and conditions: 

        Section 5.1    Non-Statutory Stock Options.    All options granted under
the Plan shall be nonstatutory options, not entitled to special tax treatment under Section 422 of the Internal Revenue Code of 1986, as amended to date and as may be further amended from time
to time (the "Code"). 

        Section 5.2    Option Grant Dates.    On the date of each Annual Meeting after the
Effective Date of the Plan, the Company will, without cost to the grantee and without the exercise of the discretion of any person or persons, grant to each Eligible Director who is elected to serve a
term as a director at such meeting and to each Eligible Director who is serving as a director for a term that continues after such meeting, an option to acquire 5,000 shares of Stock at an exercise
price determined in accordance with Article VI and subject to adjustment under Article IX; provided, that the Board of Directors may, in
its discretion by majority vote, increase or decrease the number of shares subject to the aforementioned option. If an Eligible Director is elected or appointed to serve a term as a director on a date
other than the date of the Company's Annual Meeting and has not otherwise received an option to acquire shares of Stock for such year, the Company will, without cost to the grantee and without the
exercise of the discretion of any person or persons, on the date of such election or appointment, grant to such Eligible Director an option to acquire 5,000 shares of Stock at an exercise price
determined in accordance with Article VI and subject to adjustment under Article IX; provided, that the Board of Directors may, in its
discretion by majority vote, increase or decrease the number of shares subject to such option. 

        Furthermore,
the Board of Directors of the Company may, from time to time, deem it appropriate and may provide certain Eligible Directors with additional options to acquire Stock at an
exercise price determined in accordance with Article VI and subject to adjustment under Article IX. 

        Section 5.3    Transferability.    Each option granted under the Plan by its terms
shall not be transferable by the grantee otherwise than by will or by the laws of descent and distribution or pursuant to a domestic relations order as defined by the Code or Title I of the Employee
Retirement Income Security Act, or the rules thereunder. 

        Section 5.4    Vesting and Term of Option.    Options become exercisable on the first
anniversary date after the date upon which the options were granted. When an option becomes exercisable, the shares may be purchased at any time, or from time to time, in whole or in part, until the
option term expires; provided, however, that any option granted pursuant to the Plan shall become exercisable in full upon the death of the grantee, the failure of such grantee to stand for
re-election or be re-elected, or the retirement of such grantee after serving at least 60 consecutive months on the Board of Directors. Unless terminated earlier in accordance
with the terms of the Plan, each option shall terminate upon the expiration of ten years after such option was granted. 

        Section 5.5    Change of Control.    In the case of any merger, exchange of shares,
consolidation or combination of the Company (other than a transaction in which the holders of Stock immediately prior to the
consummation thereof own 50% or more of the voting securities eligible to vote for the election of directors of the surviving entity immediately after the consummation of such transaction) all options
theretofore granted and not fully exercisable shall become exercisable on the date that is 30 days prior to the record or effective date of such merger, exchange of shares, consolidation or
combination. 

        If
a tender offer or exchange offer for the Stock (other than such an offer by the Company) is commenced or if the Company shall set a record date to approve an agreement providing for a
sale or other disposition of all or substantially all of the assets of the Company, all options theretofore granted and not fully exercisable shall become exercisable in full upon the commencement of
such tender offer or 30 days prior to such record date and shall remain so exercisable for a period of 60 days following such date after which they shall revert to being exercisable in
accordance with their terms. 

        If
any tender offer, exchange offer, or sale or other disposition of all or substantially all of the assets of the Company results in any grantee ceasing to be a director of the Company,
then all options theretofore granted and not fully exercisable shall automatically become exercisable in full upon the termination of such person as a director. 

        Section 5.6    Manner of Exercise.    Options may be exercised only by written notice
to the Company, which notice must specify the date the stock option is to be exercised (such date must be on or after the date of the notice) and the number of shares of Stock covered by the exercise,
accompanied by payment of the full option price of the shares covered by the options being exercised and payment of 

all
amounts, if any, that the Company is required to collect and remit to the Internal Revenue Service or any other taxing authority as a result of such exercise. Such payment shall be made in one or
a combination of the following alternative forms: 

          (i)  cash
(including check, bank draft or money order); 

         (ii)  certificates,
duly endorsed or accompanied by appropriate transfer instruments, representing shares of Stock previously acquired and standing in the name of the
grantee, with an aggregate fair market value on the date of exercise that is equal to or less than the option price of the shares covered by the options being exercised hereunder; or 

        (iii)  by
delivering a properly executed exercise notice together with irrevocable instructions to a broker to deliver promptly to the Company the total option price in cash. 

        If
the grantee desires that the shares of Stock be registered in his or her name and that of another as joint tenants with rights of survivorship, he or she should so state in the
notice. In no case may fewer than 100 of such shares be purchased at any one time, except to purchase a residue of fewer than 100 shares. An option may not be exercised for a fractional share. 

        Section 5.7    Termination of Directorship.    All rights of a grantee in an option, to
the extent that such rights have not been exercised, shall lapse and be forfeited one year after the termination of his or her services as a director of the Company or, if earlier, on the original
expiration date of the option. In the case of retirement, whether by reason of disability or age, such grantee's option may be exercised within the period set forth in the preceding sentence by such
grantee or his or her legal representative. In the case of death, such grantee's option may be exercised within the period set forth in the preceding sentence by the personal representative of the
grantee's estate or by the person or persons to whom the option is transferred pursuant to the grantee's will or in accordance with the laws of descent and distribution. 

ARTICLE VI. OPTION PRICE 

        The
option price per share for the shares covered by each option shall be the fair market value (as determined in Article VII) of one share of Stock as of the date of grant of the
option; provided, that the Board of Directors may, in its discretion by majority vote, set the option price per share for the shares covered by each
option in excess of the fair market value of one share of Stock as of the date of grant of the option. 

ARTICLE VII. VALUATION OF STOCK 

        For
all valuation purposes under the Plan, the fair market value of a share of Stock shall be the last reported sale price as of the close of trading activity on the day for which such
fair market value is to be determined, as reported on the Nasdaq National Market system, or any similar system then in use, or the principal securities exchange on which the Stock is listed on such
date. If there is no trade on such day, then the last trade price on the next preceding day for which there does exist such a trade shall be determinative of fair market value. 

ARTICLE VIII. NO RIGHT TO CONTINUE AS A DIRECTOR 

        Neither
the Plan nor the granting of a Director Stock Award or an option nor any other action taken pursuant to the Plan shall constitute or be evidence of any agreement or
understanding, express or implied, that the Company will retain a director for any period of time or at any particular rate of compensation. 

ARTICLE IX. ADJUSTMENT TO STOCK 

        In
the event any change is made to the Stock subject to the Plan or subject to any outstanding option granted under the Plan (whether by reason of merger, exchange of shares,
consolidation, reorganization, recapitalization, stock dividend, stock split, combination of shares, exchange of shares, 

change
in corporate structure or otherwise), then appropriate adjustments shall be made to the number of shares and option price per share of Stock subject to outstanding options. The grant of Stock
or options under the Plan shall not affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets. 

ARTICLE X. EFFECTIVE DATE 

        The
Plan originally became effective on June 10, 1997, the date of the first Annual Meeting after the adoption of the Plan by the Board of Directors of the Company (the "Effective
Date"). 

ARTICLE XI. AMENDMENT OF THE PLAN 

        The
Board of Directors of the Company may suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided that no such amendment shall adversely affect a
grantee's rights under any Director Stock Award previously issued or option previously granted without the grantee's consent. 

ARTICLE XII. USE OF PROCEEDS 

        The
cash proceeds received by the Company from the issuance of shares pursuant to options under the Plan shall be used for general corporate purposes. 

ARTICLE XIII. COMPLIANCE WITH APPLICABLE LAWS 

        All
transactions pursuant to terms of the Plan, including, without limitation, grants of Stock and grants and vesting of options, shall only be effective at such time as counsel to the
Company shall have determined that such transaction will not violate federal or state securities or other laws or regulations. 

ARTICLE XIV. GOVERNING LAW 

        The
Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Texas and construed accordingly. 

ARTICLE XV. SUCCESSORS 

        The
Plan shall be binding upon the successors and assigns of the Company. 

AMENDMENT NO. 1  

 TO  

 STEWART & STEVENSON SERVICES, INC.  

 AMENDED AND RESTATED

1996 DIRECTOR STOCK PLAN

(the "Plan")  

        WHEREAS, Stewart & Stevenson Services, Inc., a Texas corporation (the "Company"), previously
established the incentive compensation plan known as the "Stewart & Stevenson Services, Inc. 1996 Director Stock Plan" on August 27, 1996 (the "Original Plan"), which Original
Plan was approved by the shareholders of the Company; 

        WHEREAS, the Company filed a registration statement on Form S-8 with the Securities and Exchange Commission on
October 31, 1996 to register 150,000 shares of common stock, without par value, of the Company (the "Stock"), to be issued pursuant to stock awards and option grants made under the Original
Plan; 

        WHEREAS, on April 8, 2002, the Company amended and restated the Original Plan (the "Plan") to, among other things, dedicate an
additional 350,000 shares for issuance pursuant to stock awards and option grants made under the Plan, which amendment and restatement was approved by the shareholders of the Company; 

        WHEREAS, the Company has determined that the Plan should be amended to increase the number of shares of Stock available for issuance
hereunder from the current 500,000 shares by 300,000, such that the maximum aggregate number of shares of Stock dedicated for issuance under the Plan should be limited to 800,000 shares of Stock; 

        WHEREAS, the Company has determined that no option issued under the Plan should be repriced, replaced, or regranted through cancellation,
or by lowering the option price of a previously granted option, unless such repricing, replacement or regrant is approved by the shareholders of the Company; 

        NOW, THEREFORE, effective as of July 9, 2004, the Plan is hereby amended as follows: 

	1)
	Article III
of the Plan is amended to read in its entirety as follows: 

ARTICLE III. STOCK SUBJECT TO THE PLAN 

        The
total number of the Company's authorized but unissued shares of common stock, without par value, ("Stock") with respect to which Director Stock Awards and options may be granted
shall not exceed 800,000 shares. The class and aggregate number of shares of Stock which may be subject to Director Stock Awards and options granted under the Plan shall be subject to adjustment in
accordance with Article IX. In connection with the issuance of shares of Stock under the Plan, the Company may utilize treasury shares or authorized but unissued shares. If any Director Stock
Award or option under the Plan shall expire or terminate for any reason without having been exercised in full or if any Director Stock Award or option shall be forfeited, the shares subject to the
unexercised or forfeited portion of such award or option shall again be available for purposes of the Plan. 

	2)
	Article XI
of the Plan is amended to read in its entirety as follows: 

ARTICLE XI. AMENDMENT OF THE PLAN 

        The
Board of Directors of the Company may suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided that no such amendment shall adversely affect a
grantee's rights under any Director Stock Award previously issued or option previously granted without the grantee's consent. In addition, without the prior approval of the Company's shareholders, any
option previously granted under the Plan will not be repriced, replaced, or regranted through cancellation, or by lowering the Option Price of a previously granted option, except as provided in
Article IX. 

	3)
	Article X
of the Plan is amended to read in its entirety as follows: 

ARTICLE X. EFFECTIVE DATE 

        The
Plan originally became effective on June 10, 1997, the date of the first Annual Meeting after the adoption of the Plan by the Board of Directors of the Company (the "Effective
Date"). No Option shall be granted pursuant to the Plan after July 8, 2014.

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EXHIBIT 4.1Exhibit 10.4

 

	
  Dated:

  	
   

  	
  2004

  

 

 

PUBLIC MEDIA WORKS, INC.

 

(“Public”)

 

 

AND

 

 

REGENT WORLDWIDE SALES LLC

 

 

(“Regent”)

 

 

 

 

 

 

 

3-PICTURE DISTRIBUTION RIGHTS AND
LICENSE AGREEMENT

 

 

 

 

3-PICTURE
DISTRIBUTION RIGHTS AND LICENSE AGREEMENT

 

 

	
  Dated

  	
   

  	
  2004

  

 

 

	
  BETWEEN

  	
  PUBLIC MEDIA WORKS, INC,  a Delaware corporation
  having its registered office in  (“Public”)

  
	
   

  	
   

  
	
  AND

  	
  REGENT WORLDWIDE SALES LLC, a California limited liability
  company (“Regent”)

  

 

 

BACKGROUND:

 

A.                                   Public is in the business of producing
theatrical and television motion pictures.

 

B.                                     Regent is in the business of distributing
motion pictures throughout the World.

 

C.                                     Public and Regent have agreed to enter
into this Agreement in order to exploit the rights of certain motion pictures
to be produced by Public.

 

 

OPERATIVE PART:

 

1.                                      INTERPRETATION

 

1.1                               Definitions:  In this Agreement
except where the context or subject otherwise requires:

 

“AFMA” means the American Film Marketing Association, which
is based in Los Angeles, California;

 

“Agreement”
means this agreement as amended or modified from time to time;

 

“Business Day”
means a day on which banks are customarily open for business in Los Angeles;

 

“Collection Account” means the account established by Public
pursuant to paragraph 12.1;

 

“Commencement Date” in relation to the date the grant of
Rights for each Picture commences means the date both Parties have signed the
Picture Schedule for that Picture;

 

“Deferred Payments” means any fixed and/or percentage
contingency payments due to film stars, producers, directors or any other third
parties which are payable under their contracts;

 

 

2

 

 

“Delivery Date” has the meaning ascribed to that term in
clause 10.1;

 

“Delivery Materials” means the materials set out in Schedule
2 as may be amended from time to time by written agreement between the Parties;

 

“Expiry Date” means 31 December 2005;

 

“Funder” means any bank or financial institution
or film fund or film financier or any other person who may from time to time
invest funds in any Picture;

 

“Gross Receipts” means all worldwide gross revenues
actually received and earned by Regent from exploitation of the Pictures in all
media less material costs reimbursements, any refunds, credits, discounts, allowances
and adjustments paid to third parties.  In no event shall the following be
included in Gross Receipts:

 

•     Advances/Guarantees.  Advance payments, guarantees, and security
deposits until earned, non-refundable and not subject to forfeiture.

 

•     Expenses.  All expenses paid by or on behalf of Regent in
connection with the exploitation of the Pictures.

 

“Gross Sales” means Gross Receipts plus any additional
revenues earned by Regent from the exploitation of the Pictures, less any
refunds, credits, discounts, allowances and adjustments paid or payable to
third parties, whether or not such revenues have actually been received;

 

“Market” means  any
international film or television market including AFM, MIPCOM, and MIP-TV;

 

“Material Breach” means:

 

(a)                                   any failure, refusal, or neglect of
either Party to perform any of its material obligations under this Agreement or
under any other agreement with the other Party relating to the Pictures
including, without limitation Regent’s failure to pay any part of the Gross
Receipts into the Collection Account; and

(b)                                 any breach or default by either Party of
any representation, material warranty, covenant, or other term or provision of
this Agreement.

 

“Parties” means Public and Regent and “Party” means either one of them;

 

“Person” includes any individual, any association
of persons whether corporate or unincorporate, any government or department or
agency thereof and any legislative or regulatory body, agency or authority;

 

“Picture” and “Pictures” means the motion pictures referred to in
paragraph 2.1;

 

3

 

“Picture Schedule” means a schedule in the form of Schedule
1 which contains Regent’s Approvals, the production schedule and any agreed
variation to the minimum creative and technical specifications set out in
Schedule 1;

 

“Pre-production Date” means the date which is 2 weeks after
the Commencement Date or such other date as may be agreed by the Parties;

 

“Rights” means the rights described in paragraphs
4.1 and 4.2;

 

“Sub-distributors” means all persons, whether sales agents,
distributors or otherwise, appointed by Regent to arrange sales, distribution
and marketing of, and otherwise to exploit the Rights in the Pictures or any of
them;

 

“Sub-distributor Agreement”
means any sales agreement with a Sub-distributor relating to one or more of the
Pictures;

 

“Term” has the meaning set out in clause 5.1;

 

“Territory” means the Universe;

 

“US$” means the lawful currency of the United States of
America.

 

1.2                                 General provisions of
interpretation: In the construction and interpretation of this Agreement,
except to the extent that the context requires modification:

 

(a)                                 references
to paragraphs, sub-paragraphs, exhibits and schedules are references to
paragraphs, sub-paragraphs of, and exhibits and schedules to, this Agreement;

 

(b)                                words
importing the singular number include the plural and vice versa;

 

(c)                                 headings
are inserted for convenience only and do not affect the interpretation of this
Agreement;

 

(d)                                references
to “written” and “in writing” include any means of permanent visible
representation;

 

(e)                                 references
to any document include all modifications and replacement documents from time
to time; and

 

(f)                                   references
to parties are references to parties to this Agreement.

 

2.                                      THE PICTURES

 

2.1                                The
Pictures shall be based upon certain screenplays for which Public has obtained
all right, title and interest and for which the Parties have agreed shall be
subject to the terms of this Agreement by signing a Picture Schedule for that
particular Picture.

 

4

 

2.2                                The Pictures shall be produced by Public
or its designee, and shall conform to the minimum creative and technical
specifications set out in Schedule 1.

 

2.3                              
The budget of each
Picture shall meet the requirements of any key buyers or presale requirements
that are agreed between Regent and Public but in any event shall not be less
than US$1,000,000 plus Producer fees and Producer overheads.

 

2.4                                 The Parties acknowledge and agree that it
is intended that 3 Pictures be produced by Public and delivered to Regent prior
to the Expiry Date, however, in the event that, for whatever reason, fewer than
3 Pictures are produced by Public and delivered to Regent before the Expiry
Date then the Parties agree that the terms of this Agreement will nevertheless
apply to each Picture produced and delivered, subject only to any specific
provisions to the contrary made herein.

 

2.5                                For the avoidance of doubt, the Parties
agree and acknowledge that once Public has delivered 3 Pictures to Regent,
Public is under no obligation to grant Regent, and Regent has no obligation to
accept, any rights over any other motion pictures produced by Public, whether
or not the Expiry Date has passed.

 

3.                                      REGENT’S
APPROVALS

 

3.1                                The
following matters shall be subject to the prior written approval by Regent (not
to be unreasonably withheld):

 

(a)                                The screenplay and any amendments and
updates of the screenplay upon which each Picture is based; and

 

(b)                               The lead cast of each Picture; and

 

(c)                                The director of each Picture; and

 

(d)                               The special effects facility for each
Picture.

 

3.2                                The above approvals shall be deemed to
have been given by Regent if, within 5 Business Days after the relevant
approval materials have been submitted to (and subsequently received by)
Regent, Regent has not responded in writing to Public.  If, however,
Regent does respond in writing within that timeframe and requests changes to be
made to such approval materials, then the Parties agree to work together in
good faith and expediently to agree on such changes.

 

4.                                      GRANT OF DISTRIBUTION RIGHTS

 

4.1                                 Public hereby
irrevocably grants and assigns to Regent, in and to a maximum of 3 Pictures to
be produced by Public or its designee, the sole and exclusive right and
license, to exhibit, distribute, broadcast, license, sub-distribute, market,
exploit, sell, advertise, publicize, perform, dispose of, turn to account, and
otherwise deal in or with the Pictures and the soundtracks thereof and to
license others to exhibit, distribute, broadcast, license, sub-distribute,
market, exploit, sell, advertise, publicize, 

 

5

 

perform, dispose of, turn to
account, and otherwise deal in or with the Pictures and the soundtracks thereof
and/or any part thereof or rights therein or thereto in such manner as Regent
may in its sole discretion determine, for the Term and throughout the Territory
in any and all media, including, without limitation, theatrical,
non-theatrical, all forms of television (including, without limitation,
terrestrial, cable, satellite, pay, pay-per-view and video-on-demand), all
forms of videograms, interactive, electronic, computer-driven or other
“multimedia” formats, by means of computer networks (including without
limitation intranets, local area networks, wide area networks, and global
networks) using any technologies now or hereafter known (collectively,
“Internet Rights”), and all other similar or dissimilar media whether now known
or hereafter devised.

 

4.2                                 Without limiting the generality of the
foregoing, Regent shall have and Public hereby grants to Regent the right to do
all customary acts and things necessary or desirable in connection with
Regent’s rights, and to grant all of Regent’s Sub-distributors, licensees,
assignees and contractees such rights, including, by way of illustration, the
following:

 

(a)                                  The right to select and change the title
of the Pictures, and to release the Pictures in any or all parts of the Territory,
as Regent may designate, under such title or titles.

 

(b)                                 The right to make or cause to be made any
and all language versions of the Pictures, whether dubbed, subtitled,
superimposed, or otherwise.

 

(c)                                  The right to cut, edit and make any
changes, additions and modifications in the Pictures which shall be required
for television or other exhibition of the Pictures in the Territory.

 

(d)                                 The right to cause commercial messages
and announcements to be exhibited and/or broadcast before, during and/or after
any exhibition of the Pictures in the Territory.

 

(e)                                  The right to manufacture and procure such
positive prints, reprints and other materials and to cause the performance of
such laboratory work with respect to the Pictures as Regent may require and to
cause trailers of the Pictures to be produced, manufactured, exhibited, and
distributed in the Territory by every means, method, forms and processes or
devices now known or hereafter discovered, invented or devised.

 

(f)                                   
The right to
advertise, promote, publicize and exploit the Pictures and the underlying
literary, dramatic, musical and other material in connection therewith
throughout the Territory by such means and to such extent as Regent in its sole
discretion may deem desirable.

 

(g)                                 The right to use and control, in
connection with the exploitation of Regent’s rights hereunder, the names,
photographs, likenesses, voices and other sound effects, as well as recordings,
transcriptions, films and other reproductions 

 

6

 

thereof of the director, all lead members of the cast,
and any other key persons rendering services in connection with the Pictures
(subject only to such limitations as may be contained in Public’s contracts
with such persons disclosed in writing to Regent prior to delivery of the
Pictures to Regent).

 

(h)                                 The right, in Regent’s name or Public’s
name or otherwise, to institute and prosecute any and all actions or
proceedings which Regent may deem necessary or desirable to institute or prosecute
for the purpose of establishing, maintaining or preserving any of the Rights
and similarly to defend any action or proceeding which may be brought against
Regent, its Sub-distributors, licensees, contractees or assignees, or any of
the rights herein granted or purported to be granted to Regent, and each of
them, or which in any manner questions or disputes any of the rights herein
granted to Regent, and, at Regent’s sole election, to join Public as a party
plaintiff or defendant therein.  Regent shall also have the right to take
such steps as Regent shall deem necessary or appropriate by an action at law or
otherwise, to recover monies due pursuant to any agreement relating to the
exhibition or other exploitation of any of the Pictures, or to enforce any
other rights under any such agreement.  Regent is hereby appointed and
constituted the lawful attorney-in-fact of Public to do all acts and things
permitted or contemplated by the terms of this paragraph.  Such power is
irrevocable and coupled with an interest.

 

(i)                                     The right to permit, authorize, grant
and/or license others to exercise and/or sublicense any and all of Regent’s
rights hereunder.

 

4.3                                 Subject to anything
herein to the contrary, Regent shall have sole discretion in its licensing of
the Pictures and appointment of Sub-Distributors.

 

4.4                                 Regent shall monitor the performance of
any Sub-distributors and if any Sub-distributors are in breach of any
agreements between Regent and the Sub-distributor, Regent shall take any and
all actions necessary to enforce and/or terminate the agreements.  If
Public shall become aware of any failure to pay any amount when due under a
Sub-distribution Agreement, then Public may give written notice to Regent to
take the necessary enforcement and/or termination action against the relevant
Sub-distributor.  If Regent does not take that action within one month
from such notice, then Public may take such action as it deems necessary and
shall be entitled to recoup the cost of taking that action out of Gross Receipts. 
Regent agrees to subrogate its indemnification rights to Public with respect to
any such breach by Regent’s Sub-distributors that results in any loss to
Public.

 

5.                                      CONDITION
PRECEDENT

 

5.1                                The
grant of Rights for each Picture is subject to and conditional upon Public
acquiring all rights necessary to produce and own absolutely that Picture
including without limitation all copyright in and to the screenplay upon which
the Picture is based.

 

7

 

5.2                                 Public and Regent agree to work together
and to use all reasonable endeavours, at Public’s expense and initiative, to
procure the fulfillment of the above condition within such timeframe as may be
necessary to enable 3 Pictures to be produced by Public and delivered to Regent
prior to the Expiry Date.

 

5.3                                 In the event that Regent obtains the
rights to any screenplay upon which the Parties agree a Picture is to be based
then Regent agrees to assign those rights to Public at ‘cost’ and Regent shall
not be entitled to any ‘mark-up’ on the price paid by Regent for those
rights.  Furthermore, Regent agrees that any assistance provided by Regent
to Public in terms of sourcing screenplays or scripts for the Pictures shall be
in partial consideration of the Rights granted herein and Regent shall not be
entitled to charge a fee for this assistance.

 

6.                                      TERM AND
TERRITORY

 

6.1                                The
term of the grant of Rights for each Picture shall commence on the Commencement
Date and shall continue for a period of fifteen (15) years thereafter unless
earlier terminated in accordance with paragraph 11.

 

6.2                                 The Territory shall be the whole of the
Universe.

 

7.                                      COMMISSION

 

7.1                                Regent
shall be entitled to a commission of Twenty Five (25%) Percent of Gross
Receipts on a per Picture basis.

 

7.2                                  Public and Regent agree to negotiate in
good faith future rates of commission for any additional Pictures in order to
provide an incentive to Public to produce and deliver more than 3 Pictures to
Regent prior to the Expiry Date.

 

8.                                      PRE-SALES
AND OUTPUT DEALS

 

8.1                                On
or prior to the Pre-production Date in respect of each Picture Regent shall
secure a minimum of the following pre-sales in relation to each Picture
(subject to any specific genre limitations in the output deals):

 

(a)                                  A presale from Telecinco in Spain for
US$115,000 net of withholding tax for disaster and thriller genres and
US$101,200 net of withholding tax for action, creature and family genres and
such other amount as is provided in the output deal for other genres.

(b)                                 A presale from Greece for US$15,000.

(c)                                  A presale from Turkey for US$17,500 for
disaster and action genres and US$10,000 for other genres.

 

8

 

8.2                                 Regent shall submit each Picture to TF-1
as part of Regent’s existing volume deal with TF-1.  At Public’s request,
Regent shall also submit one or more of the Pictures to TF-1 as a possible
pre-sale.

 

8.3                                 Regent shall notify Public of any new
output deals which Regent has secured and shall include one or more of the
Pictures in those deals (subject to any specific picture limitations in those
deals).

 

8.4                                 The Parties agree that where one or more
of the Pictures are distributed or otherwise disposed of by Regent as part of a
sale of multiple pictures from different producers, the Gross Receipts
allocated to the Picture by Regent shall be fair and reasonable and made in
good faith.

 

9.                                      FUNDING AND
SECURITIES

 

9.1                                In
the event that any Funder requires Public to obtain a completion guarantee in
respect of any Picture then, if required and subject to paragraph 9.3 below,
Regent and Public shall both enter into a customary interparty agreement with,
inter alia, such Funder and the completion guarantor and shall execute such
other agreements or documents (including security documents) as may reasonably
be necessary in connection with the funding of the Picture.

 

9.2                                It is agreed by the parties hereto that
notwithstanding anything herein to the contrary, in no event, whether due to
financial arrangements or any other reasons, shall Regent be required to defer
its commission and recoupment of expenses that Regent is entitled to hereunder.

 

10.                               DELIVERY

 

10.1                           Each of the Pictures
shall be delivered on a date to be agreed in writing by both Parties.

 

10.2                           On the Delivery Date or as otherwise
provided in Schedule 2, Public shall deliver the Delivery Materials to Regent.

 

10.3                           Public, at its cost, shall deliver one
version of each Picture as specified in item 1 of Schedule 1 and a shorter
version if required pursuant to any Sub-distribution Agreement with Regent.

 

11                                  TERMINATION

 

11.1                          Public shall also have the right to
terminate this Agreement in its entirety at any time within 12 months of any of
the following circumstances coming to the attention of Public by giving written
notice to Regent and such termination shall be effective immediately upon
delivery of such notice to Regent:

 

9

 

(a)                                If Regent or any successor of Regent or
assignee of Regent’s assets and business is no longer in the motion picture
sales agency/distribution business; or

 

(b)                               If Regent makes an assignment for the benefit of creditors, or seeks relief under
any bankruptcy law or similar law for the protection of debtors, or suffers a
bankruptcy petition to be filed against it or a receiver or trustee appointed
for substantially all of its assets, and the same is not removed within thirty
(30) days.

 

11.2                           In addition, and
notwithstanding anything else herein contained to the contrary either Party may, in addition to all of its
other rights and remedies hereunder, at law, in equity or otherwise, terminate
this Agreement forthwith by giving written notice to the other if the other
commits a Material Breach and fails to cure same within thirty (30) days after
receipt of written notice demanding same.

 

12.                               COLLECTION ACCOUNT

 

12.1                           Regent shall collect and pay all Gross
Receipts into a collection account (“Collection Account”) nominated by Public
and approved by Regent.  The administrative and other costs for the
Collection Account shall be the responsibility of Public.  To the extent
any monies in connection with the exploitation of the Pictures are
inadvertently paid by a Sub-distributor to Regent or Public direct, or to any
affiliate of either, the recipient shall immediately deposit all such monies in
the Collection Account.

 

12.2                           The commission due to Regent and all
marketing and distribution expenses which Regent is entitled to recoup from
Gross Receipts shall be paid to Regent out of the monies held in the Collection
Account, following the submission by Regent of the statement referred to in
paragraph 16 and payable not less frequently than every 30 days for the first
two years and quarterly thereafter.  Such payments shall be made in the
following order:

 

(a)                                  Commission.

 

(b)                                 Marketing Expenses.

 

(c)                                  Distribution Expenses.

 

13.                               MARKETING

 

13.1                          Without
limiting the extent of the marketing activities undertaken by Regent, Regent
shall, during the first 12 months following delivery of a Picture, represent
the Picture at the AFM, MIPCOM, and MIP-TV.

 

13.2                           Subject to Public delivering to Regent
the materials needed to timely prepare and manufacture the following, Regent
agrees to have promotional materials, posters, and other agreed upon display
materials available at the aforesaid markets and to prominently display same.

 

10

 

14.                               EXPENSES

 

14.1                        Public agrees that Regent can recoup out
of Gross Receipts a maximum of US$100,000 per Picture for marketing expenses
incurred in relation to that Picture (“Marketing Costs”).  This amount
shall include but not be limited to the costs associated with creating a
trailer, key art, advertising and a non-allocable Market Allowance of US$5,000
per Market (up to five Markets and a total of US$25,000) per Picture. 
Such Marketing Costs shall not include the cost of any delivery items created
by Regent or the cost to create foreign language versions, which Regent may
elect to advance and recoup from Public’s share of Gross Receipts.

 

14.2                        Any marketing expenditure in excess of
the Marketing Costs shall be recoupable by Regent only with the prior written
approval of Public.

 

14.3                           Public shall be responsible for all payments to third
parties (including, without limitation, all development, production and
financing costs, residuals and participations (“Third Party Payments”) other
than payment of obligations incurred by Regent in connection with its
distribution and marketing of the Pictures which under no circumstances shall
include Third Party Payments.

 

14.4                           Regent can also recoup actual, direct
“out of pocket” distribution expenses including but not limited to, print,
tape, cassette and disc manufacturing costs; packaging, shipping, handling,
storage, insurance and customs costs; format conversion costs and editing
costs; dubbing costs; censorship fees, copyright registration fees, and all
insurance premiums and other fees or costs which Regent may agree to pay on
behalf of Public, provided that the total cost of such distribution expenses
shall not exceed a cumulative cap of twenty-five thousand dollars ($25,000) per
Picture without the prior written approval of Public.

 

14.5                           If, for whatever reason, Public fails to
deliver 3 Pictures to Regent prior to the Expiry Date, then the Marketing
Allowance per Picture shall be:

 

(a)           If
only one Picture is delivered, to US$10,000 (up to five Markets and a total of
US$50,000);

 

(b)           If
only two Pictures are delivered, to US$7,500 (up to five Markets and a total of
US$37,500).

 

15.                               CREDITS

 

15.1                          Credits shall be accorded on all copies
of each Picture in the main titles, on a separate card, and in all paid
advertising for the Picture (excepting the usual excluded ads) and all
promotional materials in good faith to Regent and its principals including a
possible co-production, producer and executive producer credit(s).  All
other opening and closing credits shall be at the sole discretion of Public
subject to any contractual credit requirements.

 

11

 

All other opening and closing credits shall be at the
sole discretion of Public subject to any contractual credit requirements.

 

15.2                          Upon delivery of each Picture, Public
shall deliver to Regent a complete statement, certified by Public to be true,
accurate and complete, setting forth the names of all persons to whom Public is
contractually obligated to accord credit on the screen and/or in any paid
advertising, publicity or exploitation of the Picture, the exact placement,
wording and size of each such credit, and copies of all of the actual
contractual requirements with respect thereto.  Notwithstanding the
foregoing, Regent shall not be required to give any credit that would be
contrary to customary industry exclusions, exceptions, and limitations, and
Regent’s failure to do so shall not be deemed to be a default or breach under
this Agreement.  Regent may in its discretion accord credit in advertising
to the writer, director and any cast or crew member, which credit is more
prominent or more extensive than that described in Public’s statement, if the
same will not constitute a violation of the provisions of any agreement. 
Regent shall be entitled to rely entirely upon Public’s statement, and if by
reason of any improper information or lack of information contained in Public’s
statement, Regent shall accord to any person improper or insufficient credit or
no credit and such person shall by reason thereof assert a claim against
Regent, then Public shall defend, indemnify and hold Regent, its subsidiaries,
affiliates, Sub-distributors, licensees, assignees and contractees harmless
from and against all such claims, actions and/or proceedings, including,
without limitation, reasonable attorneys’ fees, all other costs, expenses,
losses and damages arising therefrom and the cost of correcting such improper
or insufficient credit.  Regent shall notify Sub-distributors of the
credit obligations, if any, contained in Public’s statement; provided that
neither an inadvertent failure by Regent, nor the failure of a third party to accord
credit as provided for in Public’s statement shall be deemed a breach hereunder
by Regent.  To the extent practicable, Regent agrees to retrospectively
cure any failure by Regent to accord the credit contained in Public’s
statement.  In no event shall any failure to comply with the credit
obligations hereunder entitle Public to rescind or terminate this Agreement
and/or to seek any equitable relief with respect to the exercise by Regent and
its Sub-distributors, licensees, assignees and contractees of the rights
granted hereunder.  Regent and its Sub-distributors, licensees, assignees,
and contractees shall be accorded credits in such manner, size, position,
substance and form as Regent may elect in connection with the Pictures,
provided that they do not infringe any existing credit obligations.

 

15.3                          The Parties will use reasonable efforts
to ensure that Public’s logo (or its designee)  be displayed in a
prominent position on all printed material and at the front of all trailers and
other video promos created under each parties respective control.

 

15.4                          Regent shall be entitled to receive a
presentation credit on screen and in paid ads and on video packaging in a size
and prominence no less than that accorded Public or its designee.

 

12

 

16.                               STATEMENTS
AND ACCOUNTING

 

16.1                          Regent
shall keep records relating to its distribution of each Picture, which shall be
kept on the same basis, in the same manner, at the same place and for the same
period (but not less than the two-year incontestability period provided below)
as such records are customarily kept by distributors in the film
industry.  The records will include records of Gross Receipts and all
marketing expenses and distribution costs paid or received by Regent. 
Regent will render statements on a quarterly basis within sixty (60) days
following the close of each calendar quarter during the Term.  Statements
rendered by Regent may be changed from time to time to include overlooked
items, to correct errors and for similar purposes.  Should Regent make any
overpayment to Public for any reason, Regent shall have the right to include an
amount equal to any such overpayment in Regent’s next invoice for commission or
expenses (as the case may be) or may demand repayment from Public.  Any
monies due and payable to Public and/or Regent pursuant to any such statement
shall be paid out of the Collection Account, subject to any laws and
regulations requiring deductions or withholdings for income or other taxes
payable by or assessable against Public.  All statements will become
incontestable two years after the date rendered except only as to any claim
filed within the applicable time frame.  Public shall have a customary
right of audit (on reasonable advance notice, during regular business hours),
by a certified public accountant or chartered accountant on its behalf, of
Regent’s records relating to the Pictures (but not more than once annually) in
order to verify the accuracy of the statements rendered by Regent hereunder. 
In the event any such audit shall reveal an underpayment by Regent, Regent
shall immediately remedy the underpayment and if the underpayment is greater
than twenty percent (20%) or US$20,000 (whichever is the lesser) in amounts
which would have been payable to Public, then Regent will reimburse Public the
expenses incurred in connection with such audit.

 

17.                               REPRESENTATIONS
AND WARRANTIES

 

17.1                           Public
hereby represents and warrants to Regent that:

 

(a)                                  It is a limited liability company validly
existing and in good standing under the laws of Delaware.  It has the full
right, power, legal capacity and authority to enter into this Agreement, to
carry out the terms and conditions hereof and to grant to Regent the rights,
licenses and privileges herein granted to Regent.  The consent or release
of no other person, firm or entity is necessary in order for Public to enter
into this Agreement and/or to grant to Regent the rights and licenses granted
pursuant to this Agreement.

 

(b)                                 The execution, delivery and performance
of this Agreement by Public shall not violate or contravene any agreement or
other instrument to which Public is a party.  This Agreement has been duly
authorized, executed and delivered by Public.

 

13

 

The following warranties and representations shall be
given as at the Delivery Date of each Picture.  To the best of its
knowledge and belief, Public hereby represents and warrants to Regent that:

 

(c)                                  Neither the Picture nor its contents
(including, but not limited to, the title or titles thereof and any music and
sound synchronized therewith), nor any use, distribution and/or other
exploitation of the Picture by Regent pursuant to this Agreement, nor any
exercise by Regent of any or all of the rights granted to Regent pursuant to
this Agreement, nor any of the Delivery Materials shall at any time during the
Term violate or infringe upon any right or interest of any person or entity,
including, but not limited to, any copyright, literary right, dramatic right,
privacy right, musical right, publicity right, artistic right, personal right,
property right, civil right, trademark right, trade name, service mark, or any
other right or interest of any person or entity, or constitute unfair
competition against or defame any person or entity.

 

(d)                                 During the Term there shall be no actual
liens, claims, encumbrances, legal proceedings, restrictions, agreements or
understandings which will or might conflict or interfere with any or adversely
affect any of the representations and warranties of Public contained herein,
and/or enjoyment by Regent of any or all of the rights granted to Regent
hereunder, including, but not limited to, Regent’s exclusive right and license
to manufacture, distribute, market, advertise, publicize and otherwise exploit
the Picture throughout the Territory.

 

(e)                                  Public owns and controls, for the Term,
without any limitations or restrictions or encumbrances of any kind whatsoever,
any and all rights of every kind and character necessary and/or desirable to
enable Public to grant to Regent the rights granted pursuant to this Agreement
and to enable Regent to exercise and enjoy the rights granted to Regent
pursuant to this Agreement (without Regent incurring any obligation or
liability to any person or entity), including, but not limited to, all
performance rights and advertising rights and all other rights granted to
Regent hereunder in and to all literary, dramatic, musical and other material
contained in the Picture.  With respect to the Picture, Public will
secure, obtain and pay for, throughout the Term, all necessary licenses,
permissions and releases as may be required for the full and unlimited exercise
and enjoyment by Regent of each and all of the rights herein granted to Regent.

 

(f)                                    All obligations and amounts payable with
respect to the Picture and/or with respect to the production thereof,
including, but not limited to, all salaries, royalties, license fees, service
charges, laboratory charges, union obligations and the like, have been and/or
shall be fully and timely paid and satisfied by Public.  Regent shall have
no obligation for past, current or future salaries, royalties, laboratory
charges or similar payment (except for those laboratory or service charges
incurred directly by Regent for its own account).  Without limiting the
generality of the foregoing, Public shall bear and shall timely pay for, and
Regent shall under no circumstances have any responsibility or obligations for,
any and all fees, payments, costs and charges associated with 

 

14

 

the production of the Picture, including, without
limitation, all costs of pre-production, production and post-production of the
Picture; all taxes, fees and charges in connection with the tapes, the
negatives, the positive prints and/or the other materials for the Picture; all
salaries, fees, payments, costs or charges or payment payable to any producer,
director, writer, actor, performer, artist, talent, composer, lyricist, musician
and/or any other person or entity who performed services or furnished material
in connection with the Picture and/or any other person or entity who performed
services or furnished material in connection with the film clips and other
material included in the Picture; and any and all fees, charges, costs and
amounts payable to any guild, union, performing rights society, publisher or
owner of master recordings and/or to any other person or entity by reason of
the exercise by Regent of any of the rights granted to it hereunder.

 

(h)                                 The Picture is not in the public domain
and is registered in the USA and protected under copyright within each country
of the Territory.

 

(i)                                     The Delivery Materials are complete and
accurate, and Regent shall incur no liabilities to any person and/or entity
arising out of Regent’s compliance with such lists and elements and materials
and the use thereof.  In the event that all Delivery Materials are not
delivered in accordance with the delivery schedule, then Regent shall have the
option, but not the obligation, to create or correct such materials and recoup
the expense thereof out of Gross Receipts.

 

17.2                           Regent hereby
represents and warrants to Public that:

 

(a)                                  It is a limited liability company validly
existing and in good standing under the laws of Texas.  It has the full
right, power, legal capacity and authority to enter into this Agreement, to
carry out the terms and conditions hereof and to perform the obligations
herein.  The consent or release of no other person, firm or entity is
necessary in order for Regent to enter into this Agreement and/or to obtain the
rights and licenses granted pursuant to this Agreement.

 

(b)                                 The execution, delivery and performance
of this Agreement by Regent shall not violate or contravene any agreement or
other instrument to which Regent is a party.  This Agreement has been duly
authorized, executed and delivered by Regent.

 

(c)                                  Regent
recognizes the value of the Pictures and acknowledges all rights therein, the
goodwill pertaining thereto, and any secondary meanings in the minds of the
public belong solely to Public.  Accordingly, Regent acknowledges that the
Pictures are unique and original and that on the Delivery Date of each Picture
Public will have acquired valuable goodwill in the Picture, and that,
therefore, any and all equities, rights or secondary meanings in and to the
Picture resulting from Regent’s activities hereunder will automatically and
immediately revert and be deemed transferred to Public on expiration of the
Term or earlier termination of this Agreement.  Regent agrees that it will
not represent or distribute any imitation of the Pictures or 

 

15

 

any confusingly similar motion picture either during
the Term or after the expiry of the Term, without first obtaining Public’s
written consent.

 

18.                               INDEMNITIES

 

18.1                          Public
will indemnify and hold harmless Regent, its affiliates, licensees, successors,
and assigns and its and their officers, directors, owners, shareholders, employees,
attorneys and agents from and against:

 

(a)                                  All
claims, losses, liability, damages and expenses, including reasonable
attorneys’ fees, arising out of Public’s production and delivery of the
Pictures to Regent or out of any breach of any of Public’s representations,
warranties or agreements hereunder;

 

(b)                                 All
third party payments, including without limitation all profit participations,
royalty amounts, music synchronization or other music costs, license fees,
royalties, reuse fees, and any amounts payable to or in connection with any
guild, union and/or residual obligation, none of which payments shall be
Regent’s responsibility.

 

18.2                           Regent will indemnify
and hold harmless Public, its affiliates, successors and assigns and its and
their officers, directors, owners, shareholders, employees, attorneys and
agents from and against:

 

(a)                                 All
claims, loss, liability, damages and expenses, including reasonable attorneys’
fees, arising out of any breach of any of Regent’s representations or
warranties hereunder or out of any of its distribution activities through
Regent itself, (except that Regent shall not have any indemnification
obligation, nor shall it be in breach hereof, for any inadvertent failure by it
to accord any credit to any person or entity, or for any failure by any third
party to accord any such credit).

 

19.                               MISCELLANEOUS

 

19.1                          Dispute
resolution Any dispute under this Agreement will be resolved by final and
binding arbitration in Los Angeles, California under the AFMA rules.  Each
Party waives any right to adjudicate any dispute in any other court or forum,
except that a Party may seek interim relief before the start of arbitration as
allowed by AFMA rules.  The Parties will abide by any decision in the
arbitration and any court having jurisdiction may enforce it.  Each Party
submits to the jurisdiction and venue of the courts located in Los Angeles,
California to compel arbitration or confirm or enforce any arbitration
award.  Each Party hereto consents to service of process by certified mail,
return receipt requested, at the address indicated below.

 

19.2                          Costs
Each Party shall bear their own legal costs in relation to the negotiation,
preparation and enforcement of this Agreement, provided that in the event of
any legal proceedings (including the arbitration proceedings referred to above)
among

 

16

 

the parties arising out of or in
relation to this Agreement, the prevailing Party shall be entitled to
attorneys’ fees and costs, to be awarded by the court or arbitrator(s).

 

19.3                           Governing law This Agreement shall be governed by
the laws of the State of California applicable to contracts executed and to be
fully performed within the State of California (and where applicable the
Federal Laws of the United States) without regard to conflict of laws
principles.

 

19.4                           No Agency Nothing contained in this Agreement
shall be construed as creating an agency, partnership or fiduciary relationship
between the parties hereto, nor a third party beneficiary relationship as to
any third party, whether or not specifically mentioned herein.

 

19.5                           Destruction of Material Regent may destroy, or cause to be
destroyed, any and all prints and other film or tape material (other than
negatives or fine grain prints or other materials furnished by and at the cost
of the Public).  Regent, its subsidiaries, affiliates, assignees,
contractees, Sub-distributors and licensees, shall not be responsible for any
loss, theft or destruction of or damage to any positive prints, negatives, dupe
negatives, fine grain prints, soundtrack or other film material of any and
every kind, and Regent shall not be obligated, but shall have the right, to
maintain insurance covering the film material delivered hereunder.

 

19.6                           Assignment Neither Party shall have the right
to assign this Agreement except with the consent of the other Party hereto,
which consent shall not be unreasonably withheld.  Any purported
assignment to the contrary shall be null and void.  However, Regent shall
have the right to license, sub-distribute and sub-contract all of the Rights
hereunder and to assign its rights hereunder to any entity that acquires all or
the majority of all of Regent’s assets.

 

19.7                           Waiver Any waiver (whether express or
implied) of any breach of the terms of this Agreement shall not be construed as
a continuing waiver of consent to any subsequent breach of the Parties hereto.

 

19.9                           Notices Every notice to be given under, or
in connection with, this agreement shall be given in writing by:

 

(a)                                 personal
delivery;

 

(b)                                mailing
by pre-paid registered post, and shall be deemed to be given ten (10) Business
Days after (but exclusive of) the date of mailing; or

 

(c)                                 facsimile
transmission, and shall be deemed to be given at the time specified in the
facsimile transmission report of the facsimile from which the transmission was
made which evidences full transmission, free of errors, to the facsimile number
of the party given notice to the addresses specified below or if a written
notice of change of address is given then to the new address:

 

17

 

	
  To:  
         Public:

  	
   

  	
   

  	
  Public
  Media Works, Inc.

  
	
   

  	
   

  	
   

  	
  14759
  Oxnard Street

  
	
   

  	
   

  	
   

  	
  Van
  Nuys, CA 91411

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile: 
  818-904-9341

  
	
   

  	
   

  	
   

  	
  Attention:  Tom Szabo

  
	
   

  	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To:

  	
  Regent:

  	
  Regent
  Worldwide Sales LLC

  
	
   

  	
   

  	
   

  	
  10990
  Wilshire Blvd, 18th Floor

  
	
   

  	
   

  	
   

  	
  Los
  Angeles, CA  90024

  
	
   

  	
   

  	
   

  	
  Attn:  
  Business Affairs

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile: 
  310-806-4268

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with
  copy to:

  	
   

  	
  Jarchow
  Investment Group

  
	
   

  	
   

  	
   

  	
  8411
  Preston Road, Suite 650

  
	
   

  	
   

  	
   

  	
  Dallas,
  Texas 75225

  
	
   

  	
   

  	
   

  	
  Attn:
  Stephen P. Jarchow

  

 

Notwithstanding any other provision contained in this
clause any notice given on a day which is not a Business Day, or if given after
5.00 pm in the place in which it is given shall be deemed to be given at 9.00
am on the next Business Day.

 

19.10                     Confidentiality Each Party shall at all times keep
confidential, treat as privileged, and not directly or indirectly make or allow
any disclosure or use to be made, of any provision of this agreement or any
information relating to any provision, or the subject matter, of this
agreement, or any information directly or indirectly obtained from another
Party under or in connection with this agreement, except to the extent:

 

(a)                                  required
by law; or

 

(b)                                 that
the Parties otherwise agree in writing; or

 

(c)                                  necessary
to obtain the benefit of, or to carry out obligations under, this agreement; or

 

(d)                               that the information is or becomes
available in the public domain without breach by a Party of its confidentiality
obligations under this clause or at law.

 

19.11                     Counterparts; Facsimile
Copies This
Agreement may be executed in one (1) or more counterparts, each of which shall
be deemed an original and which together shall constitute one and the same
instrument.  This Agreement may be executed by facsimile signatures, each
of which shall be regarded as original for all purposes hereunder.

 

18

 

19.12                     Further Instruments Each Party shall execute and deliver to
the other Party any other instruments in such form and substance as may be
reasonably required by the other Party and which shall be reasonably approved
or designated by the other Party, to give further effect to this Agreement or
as may be contemplated by the terms of this Agreement.  Without
limitation, Public shall execute and deliver to Regent the Memorandum of
Distribution Rights in the form set out in Schedule 5 within 14 Business Days of
a request to do so by Regent.

 

19.13                     Conflict Nothing contained in this Agreement shall
be construed so as to require the commission of any act contrary to law, and
wherever there is any conflict between any provision of this Agreement and any
statute, law, ordinance, order, or regulation the latter shall prevail, but in
such event any provision of this Agreement so affected shall be curtailed and
limited only to the extent necessary to bring it within the legal requirements.

 

19.14                     Entire Agreement This Agreement constitutes the entire
agreement between the Parties with respect to the subject matter hereof and
supersedes any and all prior written or oral agreements between the Parties
respecting same.

 

19.15                     Amendment to Agreement Any amendment or addition to this
Agreement shall not be effective unless it is in writing and signed by both
Parties.

 

[Signature Page Follows]

 

 

19

 

IN WITNESS WHEREOF, the parties hereto have signed this
Agreement as of the date first set forth above.

 

 

	
  PUBLIC MEDIA WORKS, INC.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  THOMAS SZABO

  	
   

  	
   

  
	
  By:
  THOMAS SZABO

  	
   

  	
   

  
	
  Its: 
  CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6 Feb.
  04

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REGENT WORLDWIDE SALES LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  GENE GEORGE

  	
   

  	
   

  
	
  By: GENE
  GEORGE

  	
   

  	
   

  
	
  Its: 
  PRESIDENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9 Feb.
  04

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

 

20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]