Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

EXHIBIT 10.15  

 
 

AMENDED AND RESTATED
  OPERATING AGREEMENT
  OF
  OUT OF THE BLUE PRODUCTIONS, LLC    
    

        This amended and restated operating agreement dated this 23 day of April 2004 shall be effective as of the 22nd day of December, 2003, by and among
Graymark Productions, Inc., A & A Productions, LLC ("A&A") and Frozen Television, Inc. ("Frozen") (herein individually referred to as "Member" and collectively referred to as
"Members"). 

        Pursuant
to California State Law, the undersigned parties mutually agree and covenant as follows: 

1. DEFINITIONS: The following terms used in this Agreement shall have the following meanings: 

"Ancillary
Rights" shall mean any and all ancillary, incidental or subsidiary rights for the Picture, including without limitation, soundtrack rights, clip rights, video game rights (including, but
not limited to, the sole and exclusive right to create or license the creation of interactive programs based on the Picture, whether in CD-ROM, DVD, set-top or arcade formats),
music publishing rights and merchandising rights (e.g., games, computer, video and other electronic games, toys, comic books, apparel, food, beverages, posters, and other commodities, services or
items), commercial tie-ins, dramatic stage rights, radio rights, books-on-tape, live television rights, music, music publishing, soundtrack rights, photonovel,
novelization, interactive media, multi-media, and theme park (or other "theme" attraction) rights in and to the Picture. 

"Cash
Available for Distribution" shall mean, with respect to any fiscal period, all cash receipts of the Company from the rights sales, distribution and/or any and all exploitation of the Picture
including,
without limitation, any and all exploitation of the Ancillary Rights, in any, every and all markets and media, whether now known or hereafter discovered throughout the universe, but not including
capital contributions and Sale Proceeds, after deducting Operating Expenses, third-party distribution fees and expenses, cash deferments (paid out on a pari
passu basis) to cast, equipment suppliers, rights holders or any other approved party, and other payments made in connection with any loan to the Company, capital expenditures
of the Company and amounts set aside for creation or addition to reserves. 

"Investment
Recoupment" shall mean at such time that GrayMark Productions shall have received distributions of Cash Available for Distribution from the Company equal to 100% of the capital
contributions of GrayMark Productions, Inc. to the Company, plus interest on the capital contributions at the rate of Prime plus Two Percent (2%) per annum from the date GrayMark
Productions, Inc. made such capital contribution to the Company in accordance with Paragraph 6. 

"Investor
Agreement" shall refer to Investor Agreement dated November 20, 2003 among the Members and as amended pursuant to the Amendment to Investor Agreement dated January 5, 2004. 

"Majority
Vote of the Members" shall mean the affirmative vote, or written consent by proxy or otherwise, of the Members entitled to receive 51% or more of distributions of Cash Available for
Distribution prior to Investment Recoupment at the applicable time of the decision. 

"Member"
means each party presently or hereafter executing this Agreement as a member. 

"Member's
Interest in the Company" means an individual Member's share of the Company profits, surplus or losses. In addition, rights, powers and liabilities of the Members shall apply fully as set
forth by the laws of the State of California. 

1

 

"Net
Income" or "Net Loss" shall mean the income or loss of the Company for each tax year or portion thereof as determined for federal income tax purposes, including, without limitation, related
federal tax items of gain, loss, deduction, credit, tax preference, and recapture. 

"Operating
Expenses" shall mean, with respect to any fiscal period, the amount of cash disbursed in such period in the ordinary course of business during such period, including, without limitation,
all cash expenses, including legal and accounting costs, insurance and taxes and other direct expenses, but shall not include expenditures paid out of reserves or expenditures attributable to
obtaining rights sales. 

"Picture"
shall refer to the motion picture titled "Cloud 9," formerly known as "Out of the Blue." 

"Production
Budget" shall refer to the production budget attached to Investor Agreement as Schedule "A." 

"Vote
of Members," unless otherwise specified herein, means a vote of the Members holding a majority of the Member Interests in the Company that are eligible to vote on the matter and at the time the
vote shall be taken. 

2. NAME, PLACE OF BUSINESS, PURPOSE: The name and initial address of the Company shall be: Out of the Blue Productions, LLC, 9300 Wilshire Blvd.,
Ste 508, Beverly Hills, CA 90212. The name shall not be changed except by Majority Vote of Members. The company business shall be conducted at the above address and/or such other place or places as
the Members may determine. The company may engage in all business activities which are legal for an LLC to engage in under the laws of the State of California. 

3. DURATION: The term of the Company shall commence as of the date of filing of Articles of Organization with the California Secretary of State
and shall dissolved on December 31, 2025, unless sooner terminated pursuant to the terms of this Agreement. 

4. MEMBERS: The name, address, initial capital contribution and interest of each Member in the total initial capital of the Company are as
follows: 

	NAME/ADDRESS:
 
	 	INITIAL CAP. CONTRIB:
	 	INTEREST:
	 
	Graymark Production, Inc.

101 N.Robinson, Ste 920

Oklahoma City, OK 73102	 	$	50	 	50	%
	

A & A Productions, LLC

9300 Wilshire Blvd., Ste 508

Beverly Hills, CA 90212	
 	
$	

25	
 	

25	
%
	

Frozen Television, Inc.

1223 Wilshire Blvd., Ste 810

Santa Monica, CA 91104	
 	
$	

25	
 	

25	
%

5. ASSOCIATES AND EMPLOYEES: The Company may enter into separate agreements with associates and with employees as the Members may determine. In
such event, the Members may, but are not obligated to, make arrangements with such third parties for distribution of profits and losses of the Company. 

6. SUBSEQUENT CONTRIBUTIONS:

        (a)   Production Budget Capital Contributions. The Members have agreed to the Production Budget of $2,000,000, unless the
Members mutually agree, in writing, to increase Production Budget. There will not be any general overhead of the A&A Productions, LLC or Frozen Television, Inc. included in the Production
Budget. 

2

 

The
Company shall establish a production account from which the production costs of the Picture are to be paid. Each cash-flow payment into the production account shall require the
signature of Gray Frederickson or such other designee of GrayMark Productions, Inc. if Gray Frederickson shall be unavailable or incapacitated. 

After
approval by GrayMark Production, Inc. of the chain of title to the Picture and all underlying rights and materials, GrayMark Productions, Inc. shall commence making additional
capital contributions to the Company, and the Company shall fund the cash-flow production requirements in accordance with the Production Budget of the Picture in accordance with the
following schedule: 

        (i)    Fifty
Thousand Dollars ($50,000) upon execution of this Agreement (the "Initial Production Contribution") and approval by GrayMark Production, Inc. of the chain
of title to the Picture and all underlying rights and materials. These contributions are to be used to cover script rights acquisition; partial legal fees; setup of production offices; casting;
location scouting. The Company and A&A Productions, LLC and Frozen Television, Inc. may not commence expenditure of the Initial Production Contribution until GrayMark Productions, Inc.
approves the lead performer for the Picture (and such performer indicates his availability and willingness to perform the role). 

        (ii)   Three
Hundred Fifty Thousand Dollars ($350,000) following execution of a pay-or-play agreement with the mutually approved lead performer and
director; these funds shall be utilized to fund pre-production costs of the Picture. 

        (iii)  Five
Hundred Thousand Dollars ($500,000) not later than one (1) week prior to the commencement of principal photography of the Picture. 

        (iv)  Five
Hundred Thousand Dollars ($500,000) upon completion of the third week of principal photography. 

        (v)   Three
Hundred Thousand Dollars ($300,000) upon completion of principal photography of the Picture. 

        (vi)  One
Hundred Fifty Thousand Dollars ($150,000) upon completion of dubbing and scoring of the Picture. 

        (vii) One
Hundred Fifty Thousand Dollars ($150,000) upon completion of the final corrected answer print of the Picture and of all delivery items required by any third-party
distributor in order to complete full delivery. 

        (b)   Budget Overrun. To the extent that the actual costs of producing the Picture (including script rights acquisition, legal
fees, setup of production offices, casting; location scouting) exceed the Production Budget ("Budget Overrun"), 

        (i)    the
Members shall make the following additional capital contributions to the Company: 

        (A)  GrayMark
Productions, Inc. shall make additional contributions equal to 50% of the first $50,000 of Budget Overrun; 

        (B)  A&A
Productions, LLC shall make capital contributions equal to 25% of the first $50,000 Budget Overrun; and 

        (C)  Frozen
Television, Inc. shall make capital contributions equal to 25% of the first $50,000 Budget Overrun. 

        (ii)   GrayMark
Productions, Inc. shall make additional capital contributions equal to 100% of Budget Overruns in excess of $50,000. 

3

 

        (c)   Completion Bond. The Members acknowledge that the Production Budget may be adjusted to include a completion bond at the
discretion of GrayMark Productions, Inc. Additionally, the Company and Managers shall use best efforts to ensure that the production costs (including script rights acquisition, legal fees,
setup of production offices, casting; location scouting) of the Picture do not exceed the Production Budget. Members shall consult with each other regarding the completion bond, but the final decision
shall be at the sole discretion of GrayMark Productions, Inc. 

        (d)   Investor Agreement. The capital contributions made by the Members to the Company shall be deemed to satisfy their capital
contribution obligations to the Company pursuant to this Agreement as well as the funding of cash-flow contribution obligations and requirements under Paragraph 4 of the Investor
Agreement. Members hereby waive the requirement under Paragraph 4 of the Investor Agreement that requires GrayMark Productions, Inc. to provide proof of the entire amount of the
financing in the form of an irrevocable letter of credit, wire transfer or deposit of the full sum into a dedicated escrow account for withdrawal in accordance with the cash-flow schedule
above and Members have determined that GrayMark Productions, Inc. shall not be required to place any funds in escrow. 

        (e)   Members' Budgeted Permissible Fees. The Members agreed and acknowledged that the following fees are included in the
Production Budget of the Picture: $15,000 to be paid Gray Frederickson; $15,000 to be paid to Brett Hudson; $15,000 to be paid to Burt Kearns; and $15,000 to be paid to Albert S. Ruddy. Any fee paid
to GrayMark Productions, Inc. rather than Gray Frederickson and Gray Frederickson shall not be entitled to receive such fee other than for and on behalf of GrayMark Productions, Inc. The
Production Budget including, without limitation, the rights acquisition / script fee shall be mutually agreed upon by the Members and attached to the Investor Agreement as Schedule A
"Production Budget." 

        (f)    Distribution and Return of Underages. In the event the actual costs of producing the Picture should be less than the
Production Budget ("Underages"), the Underages shall be distributed to the Members as follows: 

        (i)    first
$50,000 of Underages, if any, shall be distributed (i) 50% to GrayMark Productions, Inc., (ii) 25% to A&A Productions, LLC and
(iii) 25% to Frozen Television, Inc. and 

        (ii)   Underages
in excess of $50,000 shall be distributed 100% to GrayMark Productions, Inc. 

Any
distributions to GrayMark Productions, Inc. in accordance with this subparagraph (f) shall reduce the capital contributions of GrayMark pursuant to this Paragraph 6. 

        (g)   From
time to time, upon vote of the Members, each Member may contribute additional cash and other properties to the Company; provided, however, that no Member shall be
liable for any additional capital contributions to the Company in excess of the requirements of this Paragraph 6 without consent of that Member. 

7. BANK ACCOUNTS: Funds and money received by the Company shall be deposited in such bank account or accounts in accordance with this Agreement
and as the Members shall determine. Checks, wire transfers or any other withdrawals from any such bank account or accounts shall be made only upon the signature of the both (i) Graymark
Productions, Inc. and (ii) A&A Productions, LLC or Frozen
Television, Inc. For clarification, no disbursements of any nature shall be made from the account or accounts without the signature of Graymark Productions, Inc. 

8. MANAGEMENT: Decisions involving all aspects of Company management including without limitation the payment of compensation and entering into
contractual obligations, shall be made by Majority Vote of the Members. It is understood and agreed that all Members have other business and time commitments, and no Member shall, without its consent,
be obligated to devote full-time to the Company business. Decisions of the Company shall be by Majority Vote of the Members. A Member's 

4

 

voting
rights shall be in proportion to the Member's percentage interest in distributions of cash available for distribution in accordance with Paragraph 10. 

9. METHODS OF ACCOUNTING/FISCAL YEAR: The Company shall keep accounts on a cash or on an accrual basis, as determined by the Members. The
accounts shall readily disclose items which the Members take into account separately for income tax purposes. As to matters of accounting not provided for in this Agreement, generally accepted
accounting principles shall govern. The fiscal year of the Company shall end on December 31 of each year. The books shall be closed and balanced at the end of each fiscal year. The books and
records of the Company shall be brought current as soon as possible after the close of each fiscal year, and a report and statement shall be furnished each Member as soon as possible after
year-end, but in no event later than two and one-half (21/2) months after the close of the fiscal year. 

10. ALLOCATIONS AND DISTRIBUTIONS:

        (a)   Distributions of Cash Available for Distribution. Distributions of the Cash Available for Distribution shall be made
quarterly or more frequently as determined by Majority Vote of the Members as follows: 

        (i)    100%
to GrayMark Productions, Inc. until the cumulative aggregate distributions of Cash Available for Distribution to cause Investment Recoupment; and thereafter, 

        (ii)   50%
to GrayMark Productions, Inc., 25% to A&A Productions, LLC and 25% to Frozen Television, Inc. 

However,
amount of Cash Available for Distribution may be retained in the Company upon Majority Vote of the Members to be used for the reasonable needs of the business. 

        (b)   Allocation of Net Income. All Net Income shall be allocated among the Members in the same proportion that distributions
of Cash Available for Distribution for the applicable fiscal year were distributed or would have been distributed in the event no distributions of Cash Available for Distribution were made during such
year. 

        (c)   Allocation of Net Loss. All Net Loss shall be allocated among the Members in proportion to their respective capital
contributions to the Company. 

        (d)   Conflicting Provisions. Notwithstanding anything in this Operating Agreement to the contrary, the Members unanimously
agree that the Company and its Members shall be subject to all of the terms of the Investor Agreement. Additionally, the Members agree and acknowledge that if there is any conflict between the terms
of this Operating Agreement and with the terms of the Investor Agreement, then the terms of the Operating Agreement shall control. 

11. INDEMNIFICATION: The Company shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending
or completed action or suit by or in the right of the Company by reason of the fact that such person is or was a Member, against costs and expenses, including attorneys' fees, actually and reasonably
incurred by the person in connection with the action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the
Company; except that no indemnification shall be made in respect of any claim, issue or matter as to which the person shall have been adjudged to be liable to the Company, unless and only to the
extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability, in view of all the circumstances of the case, the person is
fairly and reasonably entitled to indemnity for such expenses as the court considers proper. 

        Notwithstanding
the other provisions of this Paragraph, to the extent that a person has been successful on the merits or otherwise in defense of any action, suit or proceeding referred
to herein or 

5

 

in
the defense of any claim, issue or matter therein, such person shall be indemnified against costs and expenses, including attorneys' fees, which such person actually and reasonably incurred in
connection therewith. 

        Costs
and expenses incurred in defending a civil or criminal action, suit or proceeding may be paid by the Company in advance of the final disposition of the action, suit or proceeding
upon receipt of an undertaking by or on behalf of the person that he shall repay the amount advanced if it is ultimately determined that he or she is not entitled to be indemnified by the Company. 

        The
indemnification and advancement of costs and expenses shall not be construed to be exclusive of any other rights to which a person seeking indemnification or advancement of costs and
expenses may be entitled, and shall continue as to a person who has ceased to be a Member and shall inure to the benefit of heirs, administrators and executors of such a person. However, such
indemnification shall not result in any liability of the Members to any third party, nor shall the Members be required to contribute capital to the Company for any indemnification payments set forth
in this Paragraph should the assets of the Company not be sufficient to discharge such liability. 

        If
the Paragraph or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, the Company shall nevertheless indemnify each Member as to expenses,
including attorneys' fees judgments, fines and amounts paid in settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative and whether internal
or external, including without limitation a grand jury proceeding an action or suit brought or in the right of the Company, to the full extent permitted by any applicable portion of this Paragraph
that shall not have been invalidated, or by any applicable law. 

12. SALE OF INTEREST: A Member may only sell its interest, or any part thereof, in the Company with the unanimous consent of the Members. If a
Member desires to sell or transfer any of its ownership or interest in the Company, that Member (the "Offering Member") shall first give the Company and all other Members a notice (the "Notice")
containing the name, address, and terms of purchase offered by a bona fide third party purchaser. The Company shall have thirty (30) days from receipt of the Notice to purchase the Offering
Member's interest in the Company at the same price and terms specified in the Notice. If the Company does not, within that thirty (30) day period, elect to purchase that interest, the other
Members shall have the right, for fifteen (15) days thereafter, to purchase that portion of the offered interest proportionate to their respective percentages of the remaining interest in the
Company. If a Member does not choose to purchase its full entitlement to the offered interest, the other Members may purchase that interest proportionately. 

        The
Offering Member may sell all of its interest in the Company not purchased hereunder by the Company and by other Members, to the third-party purchaser at the price and at the terms
previously offered to the Company or other Members as specified in the Notice; provided, however, that such sale must be completed no later than ninety (90) days after the date of delivery of
the Notice to the Company. If the sale is not completed within that ninety (90) day period, the Offering Member must again comply with the terms of this paragraph prior to the sale of any
interest in the Company. 

13. DEATH OR DISSOLUTION: Upon the death or dissolution of a Member, the Company shall have the right and option, by written notice no later than
three (3) months after the date of the death or dissolution, to purchase that deceased or dissolved Member's interest in the Company now owned or hereafter acquired. The purchase price for that
interest shall be the average of the value established by two independent appraisers, with the representatives of the Selling Member and the Company each selecting and paying for one of the
appraisers. The purchase price shall be paid in equal installments over a thirty six (36) month period. 

6

 

14. BOOKS AND RECORDS OF ACCOUNT: The Company books and records shall be kept at the Company's place of business. Every Member and their duly
authorized attorney or accountant shall, at all reasonable times, have access to any may inspect and copy any such books and records. 

15. CAUSE OF DISSOLUTION: Termination and dissolution of the Company shall occur upon the happening of any of the following events: 

a.    Upon
the unanimous agreement of all Members to Dissolve.

b.    Upon the happening of any other event set forth in this Agreement requiring dissolution.

c.    Dissolution according to law. 

16. WINDING UP AND LIQUIDATION: Upon dissolution, the Company's business shall be wound up and liquidated as rapidly as business circumstances
will permit. The assets shall be applied to the purposes and in the order provided by law. To the extent feasible, all distributions in liquidations shall be made pro rata to the Members in kind. 

17. NOTICES: All notices or other communication among Members, except as provided elsewhere in this Agreement, shall be in writing delivered in
person or by certified or registered mail to the Member or Member's duly authorized representative, at his, her or its last known address and shall be deemed received upon actual receipt or upon the
expiration of seven (7) days after mailing, whichever is earlier. Any notice may be waived in writing by the person entitled to receive it. 

18. CALIFORNIA LAW TO GOVERN: This Agreement has been prepared for the purpose of governing a Limited Liability Company operating pursuant to the
Laws of the State of California. 

19. BINDING ON SUCCESSORS IN INTEREST: This Agreement shall bind the Members, their heirs, agents, assigns and representative. 

20. NUMBER AND GENDER: As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall each be
deemed to include the other whenever the context so indicates. 

21. PARAGRAPH HEADINGS: The paragraph and subparagraph headings and numbers used herein are for purposes of convenience and shall not be
considered in the interpretation of this Agreement. 

22. PARTIAL INVALIDITY: If any portions of this Agreement shall be held invalid or inoperative, then, insofar as it is reasonable and possible,
the remainder of this Agreement shall be considered valid and operative, and effect shall be given to the intent manifested by the portion held invalid or inoperative. 

        EXECUTED AS OF THE DAY AND YEAR FIRST HEREINABOVE WRITTEN.

MEMBERS:

GRAYMARK PRODUCTIONS, INC.

By: /s/ JOHN SIMONELLI

Its: President 

A & A PRODUCTIONS, LLC

By:/s/ AL RUDDY

Its: Manager 

FROZEN TELEVISION, INC.

By: /s/ BRETT HUDSON

Its: President 

7

QuickLinks

AMENDED AND RESTATED OPERATING AGREEMENT OF OUT OF THE BLUE PRODUCTIONS, LLCQuickLinks
 -- Click here to rapidly navigate through this document
  

EXHIBIT 10.16  

 
 

FREELANCE DIRECTOR'S LOANOUT CONTRACT
  THEATRICAL MOTION PICTURE PHOTOPLAY    
    

Agreement
("Agreement"), dated as of January 19, 2004, between OUT OF THE BLUE PRODUCTIONS, LLC ("Producer"), c/o A&A
Productions, LLC, 9300 Wilshire Boulevard, Suite 508, Beverly Hills, California 90212, Attention: Gray Frederickson, and GENCO OLIVE
OIL, INC. (Federal I.D. #95-4334636) ("Lender"), 4525 Libbit Avenue, Encino, California 91436, for the services of HARRY
BASIL ("Director"). 

	1.
	SERVICES: Producer engages Lender to furnish Director's services as director of a theatrical motion picture presently entitled
"OUT OF THE BLUE" (the "Photoplay"), intended for initial public exhibition theatrically. Director shall render such director services as Producer may
require for the Photoplay, including matters involving artistic taste and judgment, and shall promptly and faithfully comply with all instructions, directions, requests, rules and regulations made or
issued by Producer and shall perform Director's services conscientiously and to the full limit of Director's ability at all times. In no event shall Director, without Producer's prior written consent,
engage the services and/or facilities of any third party in connection with the Photoplay nor deviate or permit any deviation from the final screenplay, or otherwise utilize any element not approved
by Producer in connection with the Photoplay. It is expressly understood and agreed that this engagement is a non-union engagement and no guild or union shall have any jurisdiction over Director's
services hereunder.

	2.
	TERM: Director's services shall commence on or about January 28, 2004 for pre-production and on or about April 5,
2004 for commencement of principal photography, and continue until completion of all services required by Producer hereunder (the "Term"). Only those days worked by Director during the pre-production
period and the period of principal photography of the Photoplay or those work days guaranteed, whichever is greater, shall be deemed to constitute "work days" hereunder. The days worked by Director in
connection with the cutting and editing of the Photoplay need not run consecutively with shooting dates nor shall the same constitute "work days" hereunder, and shall be subject to Director's
professional availability. No compensation shall be payable for cutting time, or for days not worked when work days are not consecutive.

	3.
	CONSIDERATION: 

(a)    Guaranteed Consideration: Conditioned upon full performance by Director and Lender, and subject to Producer's rights of
suspension and/or termination as set forth herein in the event of Director's material breach or incapacity or the occurrence of an event of force majeure, Producer shall pay Lender the aggregate sum
of Seventy-Five Thousand Dollars ($75,000), pursuant to the following schedule: 

        (i)    25%
upon Lender's and Director's execution of this Agreement; 

        (ii)   25%
upon the commencement of principal photography of the Photoplay; 

        (iii)  25%
upon completion of principal photography of the Photoplay; and 

        (iv)  25%
upon the delivery of the answer print of the Photoplay. 

Payment
shall be made on Producer's regular payday of the week following the week during which payment had accrued. 

In
addition, Producer shall pay Lender an amount equal to ten percent (10%) of Producer's gross receipts from the exploitation of the Picture after Producer fully recoups all costs which Producer
incurs in connection with the Picture (including all costs of production and distribution). 

1

 

(b)    No Additional Compensation: The compensation paid to Lender pursuant to Paragraph 3(a) above shall constitute a complete
buy out of all uses in all media, whether now known or hereafter invented or devised and Lender is not entitled to receive any other compensation for any use, including television reruns, foreign
telecasts, theatrical exhibition, supplemental markets and other uses of the Photoplay or any element thereof. 

	4.
	RIGHTS: Producer shall own all rights in perpetuity in the Photoplay and in all the results and proceeds of Director's services.
Producer shall have the right to obtain copyright and renewals of copyright and other protection of the Photoplay in its name. Producer may assign this Agreement or all or any part of the rights
granted herein. Producer may make any changes in, deletions from, or additions to the Photoplay, and Director and Lender waive the right to exercise any right of droit
moral. Producer may exhibit, or not exhibit, the Photoplay as Producer may elect in its sole discretion. Producer may use and permit others to use Director's name to advertise
and publicize the Photoplay, any television series in which the Photoplay may be exhibited, and, in connection with the Photoplay or such series, any exhibitor or sponsor, its products and services,
but not as a direct endorsement. Without limiting the generality of the foregoing, Director hereby assigns all the foregoing rights to Producer and Director hereby irrevocably assigns, licenses and
grants to Producer, throughout the universe, in perpetuity, the rights, if any, of Director to authorize, prohibit and/or control the renting, lending, fixation, reproduction and/or other exploitation
of the Photoplay by any media or means now known or hereafter devised as may be conferred upon Director under any applicable laws, regulations or directives, including, without limitation, any
so-called "Rental and Lending Rights" pursuant to any European Economic Community ("EEC") directives and/or enabling or implementing legislation, laws or regulations enacted by the member nations of
the EEC. Director hereby acknowledges that the compensation payable hereunder includes adequate and equitable remuneration for the Rental and Lending Rights and constitutes a complete buy-out of all
Rental and Lending Rights. In connection with the foregoing, Director hereby irrevocably grants to Producer, throughout the Universe, in perpetuity, the right to collect and retain for Producer's own
account any and all amounts payable to Director in respect of Rental and Lending Rights and hereby irrevocably directs any collecting societies or other persons or entities receiving such amounts to
pay such amounts to Producer, and the the extent Producer does not so collect such amounts, or is deemed ineligible to collect such amounts, Producer may, in Producer's sole discretion, deduct from
any and all amounts otherwise payable to Director under this Agreement any and all amounts paid or payable to Director under this Agreement any and all amounts paid or payable to Director by any party
in respect of Rental and Lending Rights. Producer may assign this Agreement or all or any part of the rights granted herein. Producer may use and permit others to use Director's name and likeness to
advertise and publicize the Photoplay, any element thereof, Producer or any exhibitor, its products and services. All of Producer's rights shall continue, notwithstanding expiration of the Term, or
termination of this Agreement or Director's services for any reason.

	5.
	PAY OR PLAY: Nothing herein contained shall obligate Producer to permit Director actually to render services, and Producer shall
fully have discharged its obligations to Lender by payment of the compensation provided for in Paragraph 3 above.

	6.
	CUTTING AUTHORITY: The individual who has final cutting authority over the Photoplay is Gray Frederickson.

	7.
	CONTINGENCIES; INCAPACITY; DEFAULT: Without prejudice to Producer's other remedies and notwithstanding a prior suspension of
payment, Producer may suspend and/or terminate Director's services and Producer's further payment obligations for Lender's or Director's breach or default hereunder (collectively, a "Default"), or
Lender's or Director's incapacity, disability or inability, failure or refusal to perform under this Agreement, whether or not excusable at law (collectively, a "Disability"), or if, for any reason
beyond Producer's control, including without 

2

 

limitation
a "Labor Interruption" as defined below, Producer's development production or exploitation of the Photoplay is materially interrupted or impeded (collectively, an "Extrinsic Event").
Without prejudice to its other remedies and notwithstanding a prior suspension of payment, Producer may suspend and/or terminate Director's services and Producer's further payment obligations for
Director's breach, or inability, failure or refusal to perform, whether or not excusable at law, or if, for any reason beyond Producer's control, Producer's production of the Photoplay is materially
interrupted or impeded. Producer may suspend payment while the Default, Disability, or Extrinsic Event continues and extend the Term and postpone all dates provided herein which occur during or after
such contingency event by a period equal to the period of its duration. 

	8.
	LABOR INTERRUPTION: "Labor Interruption" means an interruption or interference with Producer's production of the Photoplay as a
result of a dispute between Producer and any collective bargaining representative, including, without limitation, any strike, lockout, boycott, slowdown or picketing arising out of such dispute. If a
Labor Interruption occurs, Producer shall have the following rights: 

(a)    The
right to suspend the services of Director and the running of time under this Agreement for the period (the "Interruption Period") from the commencement of first interruption or
the interference with such production occasioned thereby until the settlement of the dispute involved to the extent that will permit resumption of continuous production, plus the period reasonably
necessary to prepare for such resumption; and/or 

(b)    should
such Labor Interruption give rise to a cancellation of the order for development, production and/or exhibition of the Photoplay, the Producer shall have the right to cancel the
engagement of Lender hereunder. 

Producer
shall notify Lender of Producer's decision to exercise either or both of Producer's rights pursuant to subparagraphs (a) or (b), above and such notification may be given orally or in a
written notice to Lender or Director. 

	9.
	NOTICES: A written notice to Lender and Director shall be given orally, by delivery in person to Director's agent, or by mailing
or faxing it to Lender and Director care of Director's agent; the date of personal deliver, or of mailing or faxing, shall be deemed the date of receipt. Any notice by Lender or Director to Producer
shall be in writing given by delivery to Producer, or by mailing or faxing it to Producer at the address referred to above, with a courtesy copy to Robert M. Angel, A Professional
Corporation, 11601 Wilshire Boulevard, Suite 2200, Los Angeles, California 90025. Either party may designate a substitute address by written notice to the other.

	10.
	EXCLUSIVITY: Director's services shall be rendered on an exclusive basis hereunder during the pre-production period and the
period of principal photography of the Photoplay. All other times during the Term, Director shall not render services for Director, Lender or any third party, which would materially interfere with the
rendition of services Producer may require hereunder.

	11.
	BILLING: Subject to Director's satisfactory completion of all required services and Lender and Director not being in breach of
their respective representations, warranties, and obligations under this Agreement, Producer shall accord Director a "Directed by" credit on screen in the main titles in accordance with industry
custom and practice for director credits. Producer shall determine the exact style, nature, size and placement of Director's credit Producer in Producer's sole discretion. No casual or inadvertent
failure by Producer or any other person or entity to comply with the provisions of this Paragraph 11 shall be deemed a breach of this Agreement and no failure by any third party to accord any
credit to Director in accordance with the terms of this Agreement shall constitute a breach by Producer of this Agreement. In the event of any breach of Producer's credit obligations hereunder,
Lender's and Director's sole remedy shall be for damages in an action at 

3

 

law,
and neither Lender nor Director shall be entitled to equitable relief, by way of injunction or otherwise. 

	12.
	LENDER'S OBLIGATIONS AS EMPLOYER: Lender warrants that it now has and will continue to have during the Term a valid and legally
enforceable employment agreement with Director providing for such rights and remedies as may enable Lender fully to comply with all of its obligations hereunder. Lender agrees to enforce such
contract, by legal proceedings, if necessary, and Lender irrevocably appoints Producer its attorney-in-fact to so enforce such contract, and upon Producer's request, will assign such contract, or such
rights thereunder, as may be required, in order to insure full performance by Director. Lender will discharge all obligations of an employer with respect to Director's services hereunder, including,
but not limited to, payment of payroll taxes, making all deductions and withholdings required by law, and carrying Workers' Compensation Insurance.

	13.
	WORKERS' COMPENSATION: Lender hereby agrees and acknowledges that: 

(a)    notwithstanding
that Lender is furnishing Director's services to Producer hereunder (as distinguished from the employment of Director by Producer), for the purposes of any applicable
Workers' Compensation statute, an employment relationship exists between Producer and Director, Producer being Director's special employer hereunder and Lender being Director's general employer (as
the terms "special employer" and "general employer" are understood for purposes of Workers' Compensation Statutes); 

(b)    as
between Lender and Producer, Producer shall have the exclusive right to direct and control the performance of Director's services hereunder, including, without limitation, the
manner and means by which Director will perform such services; 

(c)    for
purposes of any applicable Workers' Compensation stature, Producer is the special employer of each other person (hereinafter "other special employee") whose services are furnished
to Producer by any corporation or other entity under an agreement pursuant to which Producer has the right to direct and control the performance of such other special employee's services; 

(d)    for
purposes of determining the rights and remedies, if any, of Lender, Director and/or Director's heirs, executors, administrators, successors and assigns, by reason of any injury or
illness which falls within the purview of a Workers' Compensation statute and which is sustained by Director during the period of Director's services hereunder and/or any disability or death suffered
by Director as a result of such an injury or illness, the following shall apply: 

        (i)    The
rights and remedies, if any, of Director and/or Director's heirs, executors, administrators, successors and assigns against Producer and/or Producer's agents and/or
employees (including, without limitation, any other special employee) by reason of such injury, illness, disability or death shall be governed by and limited to those provided under such Workers'
Compensation statute; 

        (ii)   Neither
Producer, nor Producer's agents or employees, shall have any obligation or liability to Lender by reason of any such injury, illness, disability or death; 

        (iii)  Neither
Lender nor Director, nor any of Director's heirs, executors, administrators, successors or assigns, shall assert any claim or bring any action by reason of
such injury, illness, disability or death against any corporation or other entity which furnishes to Producer the services of any other special employee; and 

        (iv)  Lender
shall indemnify, defend (with counsel acceptable to Producer) and hold Producer and Producer's agents and employees harmless from any loss, cost, liability or
expense arising from any claim asserted and/or action brought by Director or any other party (whether against Lender, Producer, Producer's agents and/or employees, including without limitation, any
other special 

4

 

employee
and/or any corporation or other entity which furnishes to Producer the services of any other special employee) by reason of any such injury, illness, disability or death other than any claim
or action permitted under such Workers' Compensation statute; and 

(e)    if
the applicability of any Workers' Compensation statute to the engagement of Director's services hereunder is dependent upon (or may be affected by) an election on the part of
Lender, Director and/or Producer, such election is hereby made. 

	14.
	IMMIGRATION REFORM AND CONTROL ACT OF 1986 (IRCA): This engagement is subject to Director providing the requisite documents
required by IRCA and completing and signing the required Form I-9 pursuant to IRCA Section 274a.2. Director shall comply with the immigration verification employment eligibility
provisions required by law.

	15.
	LEGAL AND EQUITABLE RELIEF: 

(a)    Lender
and Producer agree that Director's services are of a special, unique, unusual, extraordinary and intellectual character, which gives them a peculiar value, the loss of which
cannot be reasonably or adequately compensated in damages in an action at law, and in the event of any breach of this Agreement by Lender or Director, Producer shall be entitled to seek equitable
relief, by way of injunction or otherwise and/or may prosecute an action at law for damages. 

(b)    The
sole right of Lender and Director as to any breach hereunder by Producer shall be the recovery of money damages, if any, and the rights herein granted by Lender and Director shall
not terminate by reason of such breach. In no event may Lender or Director terminate or rescind this Agreement or obtain injunctive or other equitable relief by reason of any breach of any of
Producer's obligations hereunder. 

(c)    The
waiver by either party of any breach hereof shall not be deemed a waiver of any prior or subsequent breach hereof. All remedies of each party shall be cumulative and the pursuit
of one remedy shall not be deemed a waiver of any other remedy. 

	16.
	DEDUCTIONS: Producer may deduct and withhold, from any moneys payable to Lender or Director, such amounts as Producer may be
legally required to deduct and withhold.

	17.
	SERVICE OF PROCESS: In any action or proceeding commenced in any court in the State of California for the purpose of enforcing
this Agreement or any right granted in it or growing out of it or any order or decree based on it, any summons, order to show cause, writ, judgment, decree or other process may be delivered to Lender
or Director personally outside of California, in which event Lender and Director shall be subject to the jurisdiction of such court and amenable to such process as if it had been served in the State
of California and the County of Los Angeles. Without limiting the foregoing, Lender agrees to designate a person within Los Angeles County as Lender's and Director's agent for the
service of any such process.

	18.
	ASSIGNMENT: Producer may assign this Agreement or any of Producer's rights hereunder to any person or entity. No such assignment
shall relieve Producer of its obligations hereunder.

	19.
	WARRANTIES: 

(a)    Free to Enter into Agreement: Lender warrants that Director has the right and is free to enter into this Agreement and that
neither Lender nor Director will do or permit any act which would interfere with or derogate from Director's full performance hereunder or Producer's exercise of the rights herein granted. 

5

 

(b)    Director's Material: Lender warrants and represents that with respect to material supplied by Director hereunder, such material: 

        (i)    shall
be Director's original creation (except for material in the public domain and/or included at Producer's direction or provided to Director by Producer); 

        (ii)   to
the best of Lender's and Director's knowledge and belief in the exercise of reasonable prudence, does not and will not defame, infringe upon or violate the rights of
any kind, including the right of privacy, of any person, and 

        (iii)  to
the best of Lender's and Director's knowledge and belief in the exercise of reasonable prudence, is not the subject of any litigation or claim that might give rise
to litigation. 

	20.
	INDEMNITY: 

(a)    By Lender and Director: Lender and Director shall defend, indemnify and hold Producer, its licensees and assigns, and the
directors, officers, employees and agents of the foregoing, harmless from all claims, liabilities, damages, costs and legal fees arising from any breach by Lender an/or Director of any warranty or
agreement made by Lender and/or Director hereunder or from any use of the rights granted and/or materials provided to Producer by Lender or Director hereunder. 

(b)    By Producer: Producer shall defend, indemnify and hold Lender and Director harmless from all claims, liabilities, damages, costs
and reasonable outside attorneys' fees arising from the use of any material supplied Director by Producer or incorporated at Producer's direction. 

	21.
	EFFECT OF TERMINATION: No termination by either party under this Agreement shall affect the rights and obligations which
customarily survive the termination of an employment agreement, including, without limitation, the ownership and use by Producer of the results and proceeds of Director's services under this Agreement
and Producer's executory obligations.

	22.
	ENTIRE AGREEMENT: This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof, and
all previous agreements, warranties and representations, if any, are merged herein. This Agreement may not be changed, modified, renewed, extended, or discharged or any covenant or provision thereof
waived except by an agreement in writing signed by the party against whom enforcement of the change, modification, renewal, extension, discharge or waiver is sought. If any provisions of this
Agreement are held to be void or unenforceable, all other provisions hereof shall continue in full force and effect. The terms and conditions of this Agreement shall be construed in accordance with
the law of the State of California regardless of where services hereunder may be performed. The titles of the paragraphs of this Agreement are for convenience only and shall not in any way affect the
interpretation of any paragraph of this Agreement or of the agreement itself. This Agreement is not subject to any claim against Producer for fees or commissions by any of Lender's or Director's
agents, managers, attorneys, personal representatives, or any other person. 

	 	 	 	 	OUT OF THE BLUE PRODUCTIONS, LLC

GRAYMARK PRODUCTIONS, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  JOHN SIMONELLI      

	 	 	 	 	Its:	 	Manager

	
ACCEPTED AND AGREED:	
 	

 	
 	

 
	
GENCO OLIVE OIL, INC.	
 	

 	
 	

 
	

By:	
 	

/s/  HARRY BASIL      
	
 	

 	
 	

 
	Its:	 	  
	 	 	 	 

6

QuickLinks

FREELANCE DIRECTOR'S LOANOUT CONTRACT THEATRICAL MOTION PICTURE PHOTOPLAY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]