Document:

Exhibit 10.3

 

 

Writers Agreement

 

 

 

This PUBLICFILMWORKS WRITERS CONTRACT  (this “Contract”) is made as of the 3rd day
of Feb , 2004 by and among  Public Media
Works, Inc., a Delaware corporation (the “Company”), and Peter Soldinger (the
“Writer”) whose Social Security Number is ###-##-####.

 

THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1.                                       The Writer
shall be engaged to complete  the
writing of a “The Action” a.k.a “The Shock” ( the “Screenplay”). The Screenplay
must be delivered as a complete draft within an 8 week period.  All work performed under this Contract shall
become the sole property of Public Media Works for any and all uses.

 

2.                                       The Writer
shall be provided material, which may include a complete script, a television
or film treatment, a description, or other material on which the services are
to be based.  This material shall remain
the sole property of PublicFilmWorks.

 

3.                                       The Writer
shall be compensated for the writing services associated with the screenplay
known as “The Action” (a.k.a “The Shock”) as follows:

 

3.1                                                         Upon
commencement of work, the Writer shall receive $500 (five hundred dollars) per
week for a period of 8 weeks.

3.2                                                         The writer will
deliver on a weekly basis a draft of the cumulative work along with a weekly
invoice for $500.00 at which time he will be paid for that week.

3.3                                                         The writer
agrees that PublicFilmWorks will have approval rights on all materials
submitted.

 

 

4.                                       The Writer
shall be paid  the current WGA
Minimum,  as defined by the WGA for
Original Screenplay, excluding treatment or Sale/Purchase of Original
Screenplay,  if the Company enters into
a production agreement using the material produced under this Agreement. In
addition, the writer will be paid an additional $10,000 fee if the Company
enters into said production agreement. The Writer will have the right for first
rewrite, if required , once the Screenplay is put into development by the
Company. If the screenplay is 

 

1

 

                                                acquired by a
third party, the Company, will make best efforts to secure first rewrite by
Writer.

 

5.                                       The Writer
acknowledges that all results, products and proceeds of the Writer’s services,
including all original ideas in connection therewith, are being specifically
ordered by the Company and shall be considered a “work made for hire” for the
benefit of the Company.  Therefore, the
Company shall be the author and copyright holder thereof for all purposes
throughout the universe without any limitation of any kind or nature.  In consideration of compensation paid to the
Writer hereunder, the Company shall solely and exclusively own throughout the
universe in perpetuity all rights of every kind and nature whether now or
hereafter known or created in and in connection with such results, product and
proceeds, in whatever stage of completion as may exist from time to time,
including: (i) the copyright and all rights of copyright; (ii) all neighboring
rights, trademarks and any and all other ownership and exploitation rights now
or hereafter recognized in any Territory, including all rental, lending,
fixation, reproduction, broadcasting, distribution and all other rights of
communication by any and all means, media, devices, processes and technology;
(iii) the right to adapt, rearrange, and make changes in, deletions from and
additions to such results, products and proceeds, and to use all or any part
thereof in new version, adaptation, or other projects including remakes and
sequels; (iv) the right to use the title of the work performed under this
Agreement in connection therewith or otherwise and to change such title; and
(v) the right of the Company to retain all rights to the material for all
futures uses known or unknown, stated or unstated.

 

6.                                       The Writer
hereby represents and warrants that the Writer is free to enter into this
Agreement and no rights of any third parties are or will be violated by the
Writer entering into or performing this Agreement.  Writer is not subject to any conflicting obligation or any disability,
and Writer has not made and  shall not
hereafter make any agreement with any third party, which could interfere with
the rights granted to the Company hereunder or the full performance of Writer’s
obligation and services hereunder.

 

7.                                       The Writer
hereby represents and warrants that all of the work (and the Property, if any)
shall be wholly original with Writer and none of the same has been or shall be
copied from or based upon any other work unless assigned in this Agreement. The
reproduction, exhibition, or any use thereof of any of the rights herein
granted shall not defame any person or entity nor violate any copyright or
right of privacy or publicity, or any other right of any person or entity. The
warranty in this Section 7 shall not apply to any material as furnished to
Writer by the Company (unless such furnished material was written or created by
Writer or originally furnished to Company by Writer) or material inserted in
the work by Company, but shall apply to all material which Writer may add
thereto.

 

2

 

8.                                       The Writer
hereby represents and warrants that the Writer is sole owner of the Property
together with the title thereof and all rights granted (or purported to be
granted) to Company hereunder, and no rights in the Property have been granted
to others or impaired  by Writer, except
as specified, if at all, in this Agreement. No part of the Property has been
registered for copyright, published, or otherwise exploited or agreed to be
published or otherwise exploited with the knowledge or consent of Writer, or is
in the public domain.  Writer does not
know of any pending or threatening claim or litigation in connection with the
Property or the rights herein granted.

 

9.                                       The Writer
shall indemnify and hold harmless Company (and its affiliated companies,
successors, assigns, and the directors, officers, employees, agents, and
representatives of the foregoing) from any damage, loss, liability, cost,
penalty, guild fee or award, or expense of any kind (including attorney’s fees
(hereinafter “Liability”) arising out of, resulting from, based upon or
incurred because of uncured, material breach by Writer of any agreement,
representation, or warranty made by Writer hereunder. The party receiving
notice of such claim, demand or action shall promptly notify the other party
thereof.

 

10.                                 The Company
agrees to indemnify and hold harmless the Writer from and against any and all
damages and expenses (other than with respect to any settlement entered into
without Company’s written consent) arising out of any third party claim against
Writer resulting from the Company’s development, production, distribution
and/or exploitation of the project.

 

11.                                 The Writer
acknowledges that the sole right of the Writer as to any uncured, material
breach hereunder by Company shall be the recovery of money damages, if any, and
the rights herein granted by Writer shall not terminate by any reason of such
uncured, material breach.  In no event
may Writer terminate this Agreement or obtain injunctive relief or other
equitable relief with respect to any uncured, material breach of Company
obligations hereunder.

 

12.                                 The Company
hereby represents and warrants that all of the work, ideas (and the Property,
if any) shall be wholly original with the Company and none of the same has been
based upon any other work unless assigned in this Agreement.

 

ACCEPTED AND AGREED:

 

 

	
  /s/ Peter Soldinger

  	
   

  	
  /s/ Thomas Szabo

  
	
  Peter Soldinger, Writer

  	
   

  	
  Thomas Szabo, CEO

  
	
   

  	
   

  	
  Public Media Works, Inc

  
	
   

  	
   

  	
   

  
	
  April 21, 2004

  	
   

  	
  April 21, 2004

  
	
  Date

  	
   

  	
  Date

  

 

3Exhibit 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.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THOMAS SZABO

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  
	
  Its:  CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6 Feb. 04

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REGENT WORLDWIDE SALES LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GENE GEORGE

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Its:  PRESIDENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9 Feb. 04

  	
   

  	
   

  
	
  Date

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