Document:

<PAGE>
                                                                   EXHIBIT 10.13

May 13, 2002

Jason Merritt, Director of Operations
Kona Grill
7373 E. Doubletree Ranch Rd., Ste. 210
Scottsdale, AZ 85258

1. SERVICE AREA

Based on the terms of this letter agreement, U.S. Foodservice, (formerly Alliant
Foodservice, Inc., sometimes "we", "our" or "U.S. Foodservice") offer to sell to
Kona Grill (sometimes "Shortened Customer Name" or "you") unit(s) (sometimes
"locations" or "units") (collectively "customer") products carried by our
distribution center, subject to the availability of product, for the time period
stated in this agreement. This agreement is binding only upon our distribution
center and does not extend to other U.S. Foodservice locations. An expansion of
this agreement to include markets serviced by other U.S. Foodservice
distribution centers will require written approval by U.S. Foodservice.

2. SERVICES TO CUSTOMER

2.1 Order Entry

Customer orders may be placed via the Internet through our on-line electronic
order entry system, AlliantLink.com(TM). This service provides customer with a
customized order/inventory guide, on-line pricing specific to your account,
invoices, account status and multiple product usage and history reports.

2.2 Internet Access Programs

U.S. Foodservice from time to time may have negotiated Internet access
opportunities that may be available to you. For customer locations equipped with
hardware but not currently on the Internet, U.S. Foodservice may offer a
negotiated access cost to the Internet. For customer locations without hardware,
your U.S. Foodservice representative may arrange to present you with current
leasing programs for various equipment packages. These programs are subject to
change at any time.

2.3 Operations Manual

After reviewing local service parameters, customer and U.S. Foodservice will
develop a procedure information booklet for distribution to individual customer
locations. The content will provide customer locations with program operating
guidelines and contacts for local issue resolution.

2.4 U.S. Foodservice Representation

As the scope and complexity of serving your business dictates, U.S. Foodservice
will assign appropriate direct representation to your account. Customer and U.S.
Foodservice will mutually determine the U.S. Foodservice individual(s) selected
to manage the operating relationship.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 2

2.5 Program Administration

U.S. Foodservice's Customer Operations Department offers centralized account
services that span all U.S. Foodservice distribution centers serving your
account. Customer Operations administers contract pricing, deviated cost
programs, reporting, new product set-ups, incentive/allowance tracking and other
services. The Customer Operations Department provides uniform administrative
controls with the ability to execute deviated cost program pricing consistently,
at the same time, for all U.S. Foodservice distribution centers serving your
account.

3. CONDITIONS OF SALE

The average order size per customer unit will be $2,500.00 per delivery. We
recognize that there may be some exceptions which are addressed herein and under
the Section 4. Pricing of this agreement. Both average order size and product
mix (product brand, case value, weight and cube) are key elements in determining
the mark-ups of this agreement. Therefore, upon thirty (30) days advance notice
to you and your failure to correct the deficiency within such time period, U.S.
Foodservice reserves the right to adjust the terms of this agreement, including
mark-ups, upon prior notice, it there is a significant change in product mix or
a failure to regularly meet the average order size described above. Product mix
changes include, but are not limited to, changes in purchase amounts (as related
to total purchases) of the individual product categories listed under Section
4.2 Product Categories and Schedules, or changes in product brand, average case
value, weight or cube. The above average order parameters are based upon
information which you have provided us.

Products will include U.S. Foodservice exclusive brand, national brand and other
products as specified by customer and stocked by U.S. Foodservice. Unless
otherwise specified, U.S. Foodservice exclusive brand products will be utilized
to insure consistency of quality and to minimize costs.

4. PRICING

4.1 Primary Vendor Relationship

The premise of this agreement assumes that a prime vendor relationship is being
established between U.S. Foodservice and customer to provide and maximize
efficiencies. U.S. Foodservice will provide specific mark-ups for various
product categories while the customer provides support of the program by
purchasing 85% of their total purchases in each specified product category from
U.S. Foodservice.

4.2 Product Categories and Schedules

Listed below are the product categories and the applicable pricing for products
purchased under this agreement. Bi-weekly and/or monthly pricing cycles are
limited to price stable products. Items with volatile and/or frequent price
changes ("market" products as determined by U.S.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 3

Foodservice) will be priced on a weekly cycle. U.S. Foodservice assigns each
product to an appropriate category.

<TABLE>
<CAPTION>
      PRODUCT CATEGORY                    APPLICABLE SCHEDULE
      ----------------                    -------------------
<S>                                     <C>
      Frozen Foods                               10.0%
      Fresh Meat, Seafood, Poultry      Market price bid weekly
      Refrigerated                                9.0%
      Dairy                                       9.0%
      Beverage                                   12.0%
      Dry Grocery                                 9.0%
      Paper and Disposables                      10.0%
      Chemical and Janitorial                    12.0%
      Stocked Equipment and Supplies             12.0%
      Produce                              TMC, priced weekly
      Coke Contract                        National Contract
      TMC - True Market Cost
</TABLE>

Sushi grade product will be excluded from this agreement.

4.3 Produce Pricing

Due to the volatile market conditions and increased service and delivery
requirements, produce pricing is not covered by this agreement. Produce may be
offered to you on a market by market basis by the U.S. Foodservice distribution
center(s) serving your account. Where U.S. Foodservice elects to offer produce,
prices to you will be established via price list or oral quotes.

4.4 Performance Surcharge and Incentives

The Conditions of Sale previously stated an average delivery per unit of
$2,500.00. Individual orders under $500.00 will be charged an additional $35.00
to offset delivery inefficiencies. The minimum individual order size will be at
least $500.00; order requests of less than the minimum order size will only be
shipped at the sole discretion of U.S. Foodservice and may (at U.S.
Foodservice's option) include an additional delivery fee.

4.5 Incentive Programs

PROMPT PAY INCENTIVES: Your payment terms are net twenty-one, (21) days. Payment
is to be made electronically. If you select to pay prior to the net due date,
then U.S. Foodservice will pay you an incentive amount based upon the following
schedule:
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 4

<TABLE>
<CAPTION>
      NET PAYMENT DAYS              INCENTIVE
      ----------------              ---------
<S>                                 <C>
      0 - 7 days                       0.75%
      8 - l4 days                      0.50%
      15 - 21 days                     0.25%
</TABLE>

The incentive, which will be paid within thirty, (30) days following the close
of the respective quarterly period, will be calculated by multiplying the
incentive amount by the net invoiced purchases amount during the period. No
invoice deductions will be permitted. The incentive will be paid by credit memo.
This prompt payment incentive excludes all products where sell prices to
customer from U.S. Foodservice have been negotiated by customer with the vendor.

DROP SIZE INCENTIVE: To incent customer to improve our operational efficiency,
customer will be entitled to receive an incentive based upon the following
performance schedule:

<TABLE>
<CAPTION>
      DELIVERY SIZE                  INCENTIVE
      -------------                  ---------
<S>                                  <C>
      $1,500 - $2,500                  0.25%
      $2,501 - $3,500                  0.35%
      $3,501 - $4,500                  0.45%
      $4,501 - $7,000                  0.50%
      $7,001 and over                  0.75%
</TABLE>

The incentive, which will be paid within thirty, (30) days following the close
of the respective quarterly period, will be calculated by multiplying the
incentive amount by the net invoiced purchases amount during the period. The
average delivery size maintained during the respective period will be the basis
for incentive qualifications. Any deviation from customer payment terms will
void and nullify this drop size incentive. The incentive will be paid by credit
memo. This delivery size incentive is limited to those products utilizing a
mark-up schedule stated as a percentage. Excluded from the incentive are
products marked up by a fee per pound or fee per case (or unit of sale), and
products where sell prices to customer from U.S. Foodservice have been
calculated for payment included when establishing delivery size performance.

EXCLUSIVE BRAND INCENTIVE: To incent customer to improve our operational
efficiency you will be entitled to receive a U.S./Alliant Foodservice Exclusive
Brand product penetration incentive on purchases made under this agreement
during the quarterly incentive period per the schedule below.

<TABLE>
<CAPTION>
      TOTAL EB PURCHASES              INCENTIVE
      ------------------              ---------
<S>                                   <C>
      45.0% to 50.0%                    0.75%
      50.1% and above                   1.00%
</TABLE>

The incentive, which will be paid within thirty, (30) days following the close
of the respective quarterly period, will be calculated by multiplying the
incentive amount by the net invoiced
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 5

purchases amount during the period. Any deviation from customer payment terms
will void and nullify this labeled products penetration incentive. U.S./Alliant
Exclusive Brand labeled products covered by other special pricing programs
offered to customer by U.S. Foodservice will be excluded from payment under this
incentive. These purchases will, however, be included in the calculation to
determine customer U.S. Foodservice Exclusive Brand purchases as a percentage of
customer total purchases.

4.6 Vendor Terms/Performance Exclusions

When the cost of products has been negotiated directly between you and vendors,
such vendors may attempt to place specific performance parameters upon U.S.
Foodservice. These may include, but are not limited to, payment terms, purchase
quantity minimums, pick-up minimums and reporting requirements. As U.S.
Foodservice must manage its own negotiations with vendors to manage inventories,
warehouse and receiving efficiencies, U.S. Foodservice will not accept such
conditions established by customer specified vendors.

4.7 Operating Cost Adjustments

Certain economic situations may be substantial enough to cause U.S. Foodservice
to adjust the terms of this agreement. These situations include, but are not
limited to, national or regional economic changes such as fuel cost increases,
utilities cost increases or shortages and other significant increases in U.S.
Foodservice's operating expenses. In such event, U.S. Foodservice may raise the
product category schedule(s) in Section 4.2 Product Categories and Schedules,
add a surcharge amount to each delivery invoice or add a surcharge per case of
product. U.S. Foodservice will advise you ten days prior to effecting any such
changes and will review the circumstances with you.

4.8 Product Cost Increases

Regardless of the normal pricing cycle assigned to a product, U.S. Foodservice
reserves the right to immediately adjust selling price of products when
replacement cost increases by two (2%) percent or more. Selling price will be
re-established by applying the applicable mark-up amount as stated in Section
4.1 Pricing to the increased cost.

4.9 Advanced Distribution Network

To increase product handling efficiencies, U.S. Foodservice has developed the
Advanced Distribution Network ("Network"), a forward warehousing and
distribution system which supports participating U.S. Foodservice distribution
centers. The Network enhances product variety, availability, and freshness while
streamlining purchasing and administration. U.S. Foodservice may, at its option,
place certain products (customer proprietary and other products) into the
Network and may, at its option, add a fee for the services provided.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 6

4.10 Special Order Charge

To compensate for the expense incurred by U.S. Foodservice in fulfilling special
order requests, an additional 10% mark-up will be added to the applicable
category mark-up on such items. For purposes of this agreement, special orders
are "in and out" purchases made by U.S. Foodservice for your account of product
not stocked on a continuing basis.

5. LANDED COST DEFINITION

5.1 U.S. Foodservice Exclusive Products

U.S. Foodservice exclusive products include products marketed under trademarks
owned by U.S. Foodservice or its affiliates, including but not limited to
products for which U.S. Foodservice or its affiliates have exclusive marketing
and/or sales authority, property rights in a proprietary product formula, or
have supplied raw materials or packaging for the finished product. Landed Cost
for such products may be based on various national or regional published price
lists, plus inbound freight (where applicable). In the alternative, at U.S.
Foodservice's option, the Landed Cost for U.S. Foodservice exclusive products
may be calculated as set forth in Section 5.2 below "All Other Products".

5.2 All Other Products

Landed Cost for such products shall be invoice cost plus freight (where
applicable) or local market replacement cost, at U.S. Foodservice's option, plus
freight (where applicable). Landed Cost may include a fee for U.S. Foodservice
procurement activities which provide procurement leverage, order consolidation
and administration, product marketing and quality assurance. U.S. Foodservice
may, at its option, select the invoice cost to be used for determining Landed
Cost from among all invoices for product currently available for sale, or from
confirmed purchase orders to be received through the third day of the pricing
cycle for weekly priced items and through the seventh day of the pricing cycle
for monthly priced items. Landed Cost for forward purchases (including forward
warehouse purchases, Network purchases, and consigned products) may include
applicable storage, finance and/or other charges or shall be based on local
market replacement cost at U.S. Foodservice's option. Local market replacement
cost means the cost the individual U.S. Foodservice distribution center would
have been required to pay for the purchase of its normal quantity requirements
of such products. The invoice used to establish Landed Cost will be the invoice
issued by the vendor, U.S. Foodservice's Central Logistical Services department
or by The Drescher Corporation, Dot Foods or other pre-distributors.

5.3 Freight

Unless in-bound freight is included in vendor's delivered pricing, freight
charges will be based on market conditions and will not exceed the freight rate
normally payable by the U.S. Foodservice distribution center for inbound
shipments of regular quantity requirements of such products. Freight charges may
include common or contrast carrier charges by the product vendor or a carrier,
and/or charges billed by U.S. Foodservice for its freight management service.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 7

6. PROMOTIONAL ALLOWANCES

Only promotional allowances exclusively negotiated by you or on your behalf will
be passed through to customer. U.S. Foodservice shall be entitled to cash
discounts and other supplier incentives. Because of the competitive nature of
our pricing and other terms of sale, U.S. Foodservice has no additional
marketing monies to fund special customer requests (for example,
customer-sponsored events, donations to customer-directed causes, etc.).

7. DELIVERY PARAMETERS

While our goal is to accommodate customer needs and preferences regarding
delivery days and hours, the pricing of this agreement and/or certain market
transportation conditions may dictate our need to route deliveries for utmost
efficiency. As such, while U.S. Foodservice will review your customer delivery
preference, U.S. Foodservice reserves the option to assign specific delivery
days and/or maintain open delivery windows to your locations. All such delivery
designations shall be reviewed with you prior to the initiation of the program.

8. METHODS

The following methods and practices will be employed in serving your business.

8.1 Mark-ups

All mark-ups stated as a percentage reflect a percentage on cost. To accommodate
minimum handling expenses, U.S. Foodservice reserves the right to impose a
minimum fee of $1.25 per unit of sale transaction. The minimum fee shall be
increased by $0.05 per unit of sale transaction on each annual anniversary of
this agreement.

8.2 Rounding

To simplify pricing, receiving and inventory valuation, U.S. Foodservice rounds
all prices with calculated penny fractions to the next highest penny per unit of
sale.

8.3 Substitutions

All substitutions will be priced in accordance with the applicable category
mark-up.

8.4 Spilt Case Surcharge

To help defray additional handling expenses and increased damage loss
experience, U.S. Foodservice, in its sole discretion, may choose to make
available products sold in units less than manufacturer's standard containers,
and will upcharge an additional $1.75 per unit.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 8

8.5 Restocking Fee

U.S. Foodservice may, at its option, agree to accept product returns from
customers for reasons other than an U.S. Foodservice delivery error. Such
product must be unopened, full case non-perishable product, in good condition
with adequate shelf life remaining to allow for resale. To defray our additional
handling expenses for the return of such products, U.S. Foodservice reserves the
right to charge a restocking fee of fifteen (15%) percent of the selling price.
Customer returns of certain products, including but not limited to, seasonal,
special order, discontinued or promotional products will not be accepted unless
the customer or the vendor of such products agrees to reimburse U.S. Foodservice
for selling price and all other expenses involved.

8.6 Joint Buying Decisions

Forward purchases made with your concurrence will be priced to you as follows:
During the first calendar month the product is in U.S. Foodservice's warehouse,
the price will be Landed Cost plus normal mark-up. During each additional
calendar month that the product remains in U.S. Foodservice's warehouse, the
price will be increased by an amount not to exceed two (2%) percent of product
cost basis to cover the cost of financing and storage.

8.7 Annual Adjustments

The parties agree that on each anniversary of this agreement for so long as this
agreement remains in effect, each product category mark-up listed in the product
category pricing schedule above shall be increased by an additional one quarter
of one percent.

8.8 Mark-up/Pricing Limitations

Pricing of products not falling into U.S. Foodservice pre-designated categories
listed in Section 4.2 Product Categories and Schedules is not covered under this
agreement and will be handled under separately established pricing.

8.9 Order Entry Fee

The financial evaluation of this agreement included the efficiencies that your
use of our electronic ordering system, such as U.S. FoodserviceLink.com(TM),
will provide to U.S. Foodservice.

While a necessary economic component of the agreement, U.S. Foodservice
recognizes that a transition period to begin ordering via U.S.
FoodserviceLink.com may be necessary. Therefore, during the first 90 days of
customer purchasing under this agreement, customer may place orders using the
Customer Service department of the U.S. Foodservice distribution center(s)
assigned to service your account, without any additional charge. After the
initial 90 day purchasing period has elapsed, all orders placed to U.S.
Foodservice by customer outside of the U.S. FoodserviceLink.com system will be
assessed a charge of $7.50 per invoice.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 9

U.S. Foodservice reserves the right to adjust mark-ups upon thirty (30) days
notice to you if customer fails to substantially use U.S. FoodserviceLink.com as
its ordering system.

9. INVENTORY

9.1 Proprietary Products

For the purposes of this agreement, "proprietary products" are products that
U.S. Foodservice has in inventory, in transit or for which non-cancelable orders
have been placed, that have been purchased, transferred or consigned for your
account, including, without limitation, special order products, test products,
menu special products, seasonal products, customer label and non-customer label
products and other products brought into stock especially to service your
account, including requests from customer units.

To effectively service our customers, U.S. Foodservice agrees to stock certain
proprietary products as described above. However, to support the mark-up
structure and other terms of this agreement, U.S. Foodservice must maximize
warehouse capacity and limit inventory proliferation. Accordingly, we reserve
the right not to stock any special or proprietary inventory which does not meet
our minimum velocity requirement of ten (10) cases per week and twenty-six (26)
turns annually per participating U.S. Foodservice distribution center. We also
request that our customers afford us the opportunity to present alternatives to
customer-requested special and/or proprietary products.

U.S. Foodservice recognizes a customer's need to differentiate, among other
things, in theme, menu and products. While it is U.S. Foodservice's desire to
support all your needs in the product area, the combination of warehouse
capacity restraints, freight scheduling, receiving dock congestion and other
issues, require us to charge the following for proprietary products carried for
your account.

                            PROPRIETARY PRODUCT TABLE

<TABLE>
<CAPTION>
      # Of Products               Amount of Up-Charge
      -------------               -------------------
<S>                               <C>
      1 through 20                         2%
      21 through 40                        4%
      41 through 50                        6%
</TABLE>

Customer requests for handling of more than 50 proprietary products and
applicable charges must be agreed upon between the parties in writing.
Up-charges reflect an increase over applicable category mark-ups stated a
percentages. The up-charge on fee charged products shall equal two (2%) percent
of the applicable product selling price.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 10

9.2 Product Disposition Upon Agreement Termination

Upon termination of this agreement for any reason, you agree to purchase, or
cause a third party to purchase, at full selling price, including the applicable
category mark-up and any additional surcharges incurred by U.S. Foodservice, all
products that U.S. Foodservice has in inventory, in transit, or for which
non-cancelable orders have been placed, that have been purchased, transferred or
consigned at customer's request, or otherwise for your account, including but
not limited to customer-labeled or other proprietary products. The pick up of
these products, either by you or a third party (acceptable to U.S. Foodservice)
at your direction, shall be within seven (7) days of termination date for all
frozen and refrigerated products and within ten (10) days of termination date
for all other products.

You assume responsibility for full payment to U.S. Foodservice for all such
products. Such payment will be received by U.S. Foodservice within twenty-one
(21) days of agreement termination. U.S. Foodservice may, at its option, elect
to subtract payment from credits or allowance payments due to customer from U.S.
Foodservice.

In the event that the above defined product is not removed from U.S. Foodservice
within the prescribed time frames, you understand and accept that U.S.
Foodservice will dispose such products and you will be responsible for the full
payment of such product as stated above.

9.3 Obsolete and Slow Moving Products

As your proprietary products become "obsolete products" as defined below, you
agree to either purchase such products directly, cause a third party to purchase
such products or advise us how to dispose of such products. In any event, U.S.
Foodservice will be entitled to the full price, including the applicable
category mark-up, which we would otherwise be entitled to under this agreement.
"Obsolete products" shall mean those proprietary products that are test
products, products beyond code date (unusable due to shortness of code date),
products no longer used by you at a location (including limited time offers or
seasonal promotions) or which otherwise have sales velocity of less than our
minimum velocity requirement, within an individual U.S. Foodservice distribution
center, set forth in Section 9.1 Proprietary Products.

U.S. Foodservice will advise you when product(s) has been classified as obsolete
or slow moving and will provide you with a thirty, (30), day period to remove
such product from U.S. Foodservice. If customer has not relieved U.S.
Foodservice of such product within thirty (30) days of notice, U.S. Foodservice
may dispose of the product. Certain products such as out of code product or
spoiled product may be disposed of by U.S. Foodservice within three, (3) days of
notice to you.

Payment to U.S. Foodservice for obsolete products shall be made within seven (7)
days of U.S. Foodservice notifying you that a product has been classified as
obsolete and may, at U.S. Foodservice's option, be subtracted from any credits
or allowance payments due to customer.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 11

10. CUSTOMER-SPECIFIED VENDORS

If you specify a particular vendor for your account which is not currently
authorized by U.S. Foodservice, then such vendor will be required to complete
our standard vendor documentation before purchases can be made by U.S.
Foodservice for resale to your unit(s). Vendor documentation includes, but is
not limited to, statement(s) of indemnification, insurance coverage and
applicable pure food guarantees.

11. PRICE SUBSTANTIATION - RIGHT TO AUDIT

Upon reasonable notice and during regular business hours, but no more frequently
than once every six (6) months, you may examine documentation to support pricing
of products sold to customer pursuant to this agreement; provided, however, that
any such audit shall be limited to no more than twenty-five (25) items with one
price point verification per item. If such documentation is not available at the
distribution center office, U.S. Foodservice's computer generated reports will
be made available to you at the distribution center office or the audit may be
conducted at our processing center or national headquarters facility, at U.S.
Foodservice's option. The invoice date to be audited shall be limited to fall
within the thirteen (13) weeks immediately preceding such audit. The price list
for U.S. Foodservice exclusive brands, where applicable, will be made available
to you to verify the contract cost of such products.

12. PAYMENT

12.1 Payment Terms

Terms are net twenty-one (21) days, measured from invoice delivery date to date
of our receipt of payment. U.S. Foodservice reserves the right at any time to
adjust the payment terms or take any other appropriate action regarding payment
or terms, including discontinuation of service, as it deems appropriate in its
reasonable judgment, following notice to you if such notice is practical under
the circumstances. You agree to reimburse U.S. Foodservice for all costs and
expenses (including reasonable attorney's fees) incurred in enforcing its right
to payment hereunder.

12.2 Financial Statements

We reserve the right to require the annual or more frequent submission of
audited or other financial statements, including a statement of cash flow, in
order to ensure continuing confirmation of the approved payment terms.

12.3 Late Payment Charges

If invoices are not paid within the specified terms of this agreement, a service
charge will be assessed up to 1 1/2 % per month or the maximum amount allowable
by law, whichever is greater. Unpaid balances and finance charges due to U.S.
Foodservice may, at U.S. Foodservice's option, be deducted from any credits or
allowances due to customer.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 12

13. INDEMNIFICATION AGAINST FRANCHISEES

If you are a franchiser and permit distribution under this agreement to your
franchisees, and if you for any reason direct U.S. Foodservice to cease
distribution or sales of product carrying trademarks or trade dress owned by you
to one or more of your franchisees, you will defend, indemnify and hold harmless
U.S. Foodservice from and against any and all losses, damages or claims by any
terminated franchisees that may arise from: (i) U.S. Foodservice ceasing further
sales to such franchisees under this agreement; or (ii) any other action or
inaction taken by U.S. Foodservice at the direction of customer or otherwise
related to the franchise relationship.

14. TERM

This agreement shall be effective as of June 1, 2002 and continue until either
party elects to terminate, which shall require thirty (30) days prior written
notice to the other party. This agreement is non-binding upon U.S. Foodservice
until customer supplies U.S. Foodservice with a completed new account
application, and until requested financial statements and credit terms listed
under Section 12.1 Payment Terms are approved by U.S. Foodservice. Certain
circumstances, such as tardiness in payment, are grounds for immediate
termination. U.S. Foodservice may discontinue service to one or more of the
customer's locations and may terminate this agreement if an overdue payment is
not received immediately upon notification. Either party may request changes to
this agreement by giving thirty (30) days prior written notice of such request
to the other party.

15. DEVIATED COST PROGRAMS

15.1 U.S. Foodservice and Vendor Obligations

U.S. Foodservice agrees to maintain deviated costing programs in its contract
pricing system when deviated cost(s) has been negotiated directly between you
and vendors. U.S. Foodservice will only maintain those deviated cost programs
documented by the vendor and communicated to U.S. Foodservice via notice on
vendor letterhead, via electronic file, or by completion of an U.S. Foodservice
"Deviated Cost Program" form. The communication shall, at a minimum, contain:

    -   Adequate lead time of ten (10) working days
    -   Program start/end dates
    -   Information pertaining to deviated cost type (delivered to distributor,
        allowance, f.o.b. origin)
    -   Information on specific products covered, including manufacturer product
        code
    -   Signature of vendor representative authorized to offer program
    -   Vendor contact.

U.S. Foodservice may impose a charge upon vendors providing deviated costing in
part to help defray additional administrative, systems, financing and other
costs incurred by U.S. Foodservice in handling products subject to cost
deviations.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 13

15.2 U.S. Foodservice Limitations

U.S. Foodservice will not be responsible for collection, payment or any
reimbursement of monies due to customer as a result of vendors supplying
inadequate information, communication received after program start date,
predated or retroactive programs. As U.S. Foodservice acts as an administrator
regarding negotiated deviated cost programs negotiated by you, U.S. Foodservice
will not be held liable for any vendor omissions or errors in maintaining the
programs and all such related recoveries shall be from the involved vendor. Upon
reaching the stated end date of a deviated costing program, based on the vendor
documentation described above, U.S. Foodservice's pricing to the customer will
revert to the regular pricing as described in Sections 4.2 Product Categories
and Schedules and 5. Landed Cost Definition. The vendor will be responsible for
supplying updates/extensions on existing programs based on the description and
timing as stated above.

15.3 Deviated Cost Mark-up Calculations

U.S. Foodservice reserves the right to calculate mark-up based upon its Landed
Cost basis prior to any customer-specific rebates or discounts. The mark-up will
then be applied to the deviated cost to establish selling price.

16. REPORTS/ORDER GUIDES

16.1 Standard Reports

Various reports are available through U.S. FoodserviceLink.com(TM). Upon
request, the following reporting will be provided:

1.    Customized Order/Inventory Guides. One copy will be furnished to each
      purchasing location.

2.    Monthly or Quarterly Standardized Usage Report. One copy will be furnished
      to the location of your choice.

16.2 Exclusivity of Reports

As this agreement was structured with consideration only to the reports listed
in this Section, U.S. Foodservice will determine, in its sole discretion,
whether it will provide any additional reporting requested by customer
(considering the expense involved as well as available resources). The cost to
develop additional reporting will be presented for your approval and payment.
Should reporting be supplied (at the sole option of U.S. Foodservice) to a third
party at customer's request, all reporting costs, including format development
and ongoing support, will be borne by the customer or by the third party.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 14

17. SUBSIDIARIES

This agreement expressly excludes products shipped directly from City Meats and
Provisions Company Inc., a subsidiary of U.S. Foodservice Inc. and any other
subsidiaries or affiliates of U.S. Foodservice which are manufacturers,
fabricators or processors (collectively, "manufacturing entities"). In the event
customer wishes to purchase products from manufacturing entities, those
products' costs shall be determined by the manufacturing entities. A
distribution fee, if applicable, may be added to the price established by the
manufacturing entities.

18. FORCE MAJEURE

Either party hereto shall be relieved of its obligations under this agreement
for so long as such party is prevented from fulfilling its obligations by causes
outside its reasonable control, including but not limit to casualty, labor
strikes and serious adverse weather conditions. This provision shall not be
interpreted to relieve either party of its obligations to make any payments due
hereunder.

19. MISCELLANEOUS

You agree that you will not assign this agreement, in whole or in part, or
otherwise extend the benefits of this agreement to any third party, without our
prior written consent. At U.S. Foodservice's option, the provisions of this
agreement shall not apply to any unit(s) following the transfer or sale of such
unit(s). This agreement constitutes and contains the entire agreement of the
parties and cancels and supersedes any and all prior negotiations,
correspondence and agreements (excluding U.S. Foodservice credit applications),
whether oral or written, between you and U.S. Foodservice respecting the subject
matter hereof. This agreement may only be modified in writing signed by the
parties. No waiver of any provision of this agreement shall be effective unless
it is expressly set forth in writing and then only for that occurrence. The
remedies provided in this agreement are cumulative, and shall not affect any
other remedies at law or in equity. The exercise of any right or remedy herein
shall be without prejudice to the right to exercise any other right or remedy
provided herein, by law or in equity. In no event shall U.S. Foodservice be
responsible for consequential damages, lost profits or punitive damages. If any
term or provision of this agreement is held to be invalid, illegal or
unenforceable by a court of competent jurisdiction, such invalidity, illegality
or unenforceability shall not affect, impair or invalidate any other term or
provision herein, and such remaining terms and provisions shall remain in full
force an effect.

20. NOTICES

Any written notice called for in this agreement may be given by personal
delivery, first class mail, overnight delivery service or facsimile
transmission. Notices given by personal delivery will be effective on delivery;
by overnight services on the next business day, by first class mail three
business days after mailing; and by facsimile when transmission is complete. The
address of each party is set forth below.
<PAGE>
Jason Merritt, Director of Operations
Kona Grill
May 13, 2002
Page 15

21. GOVERNING LAW

This agreement shall be governed by, and interpreted in accordance with the laws
of the State of Arizona, except any such law mandating the application of the
law(s) of a different jurisdiction. The federal and/or state courts of Illinois
shall have personal and subject matter jurisdiction over, and the parties each
hereby submit to the venue of such courts with respect to, any disputes arising
out of this agreement and all objections to such jurisdiction and venue are
hereby waived. Each party consents to service of process permitted under
Illinois law or by certified mail, return receipt requested. The provisions of
this Section 21 shall survive the expiration or termination of this agreement.

If this offer is acceptable to you, please sign both copies of this agreement
retain one original for your files and return the other original to us.

Sincerely,                               Accepted by:

U.S. FOODSERVICE, (formerly Alliant      KONA GRILL
Foodservice, Inc.)

/s/ Daniel E. Carroll                    /s/ Jason Merritt
-----------------------------------      ---------------------------------------
Daniel E. Carroll                        Signature
Arizona Division President
                                         Director of Operations
                                         ---------------------------------------
                                         Title

5-29-02                                  5-29-02
-----------------------------------      ---------------------------------------
Date                                     DateOPERATING AGREEMENT

                                       OF

                          IDENTITY FILMS & COMPANY, LLC

                      A Delaware Limited Liability Company

                            Dated as of June 23, 2005

                       Greenbaum, Rowe, Smith & Davis LLP
                            Metro Corporate Campus I
                                  P.O. Box 5600
                          Woodbridge, New Jersey  07095
                                 (732) 549-5600

                                      -1-
<PAGE>

                               OPERATING AGREEMENT

                                       OF

                          IDENTITY FILMS & COMPANY, LLC

     THIS OPERATING AGREEMENT is entered into as of June 23, 2005 by and between
CKRUSH  ENTERTAINMENT,  INC.,  a  Delaware  corporation  ("Ckrush"),  having  a
principal  address at 1414 Avenue of the Americas, Suite 406, New York, New York
10019,  and  IDENTITY  FILMS,  LLC,  a  California  limited  liability  company
("Identity"),  having  a  principal  address at 2120 Colorado Avenue, Suite 120,
Santa  Monica,  California  90404.  Each  of  Ckrush  and  Identity is sometimes
referred to herein as a "Member" and together, the "Members."

                              W I T N E S S E T H:

     WHEREAS,  the  Members  have  filed  a  Certificate  of Formation to form a
Delaware limited liability company (the "Company") under the name Identity Films
&  Company,  LLC, pursuant to the Delaware Limited Liability Company Act, 6 Del.
Code Title 6 Sec. 18-101 et seq., as amended (the "Act"); and

     WHEREAS,  the  Members  desire  to  set  forth  their respective rights and
obligations with respect to the Company.

     NOW,  THEREFORE,  in consideration of the mutual covenants contained herein
and  for  other  good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS
                                   -----------

     1.1  Definitions.  Capitalized  terms  used  in  this  Agreement  have  the
following meanings:

     "Act" shall have the meaning set forth in the recitals.

     "Additional  Member"  means  a  Person  who is admitted to the Company as a
Member after the Effective Date pursuant to Section 9.4.

     "Adjusted  Capital  Account  Balance"  of a Member as of any date means the
balance  in  such  Member's Capital Account as of such date (i) increased by any
amount  such Member is deemed obligated to contribute to the Company pursuant to
Treasury  Regulation  Section  1.704-1(b)(2)(ii)(c)  and  (ii)  reduced  by  any
allocations  or  distributions  to  such Member described in Treasury Regulation
Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6).

     "Agreement"  means  this  Operating  Agreement, as amended, supplemented or
restated from time to time.

     "Budget" is defined in Section 3.8 of this Agreement.

                                      -2-
<PAGE>

     "Capital  Account"  of a Member means the account maintained by the Company
for each Member pursuant to Section 4.4.

     "Capital  Contributions"  of a Member means the amount of cash and the fair
market  value  (as  of the date of such contribution) of property contributed by
such Member to the Company.

     "Capital  Transaction"  means a sale of all or a substantial portion of the
Company's  assets  to an unaffiliated third party outside the ordinary course of
the Company's business.

     "Certificate"  means  the Certificate of Formation filed with the Secretary
of State of the State of Delaware on behalf of the Company.

     "Code"  means  the  Internal  Revenue Code of 1986, as amended from time to
time.

     "Company"  means  Identity  Films  &  Company,  LLC,  the limited liability
company governed by this Agreement.

     "Effective Date" means June 23, 2005.

     "Fielding"  means  Lisa  Fielding,  an  individual  residing at 16660 Calle
Jermaine, Pacific Palisades, CA 90272 and a member of Identity.

     "Identity  Contributed  Properties"  means the revenue from all current and
pending  film,  television and ancillary projects of Identity, including without
limitation  the  properties  and titles set forth on Schedule A attached hereto,
which  revenue  is hereby contributed by Identity to the Company in exchange for
its  Ownership Interest. Title to the properties listed on Schedule A remains in
Identity.

     "Indemnified Costs" has the meaning set forth in Section 10.1(a).

     "Indemnified Party" has the meaning set forth in Section 10.1.

     "Liquidator" has the meaning set forth in Section 12.2(a).

     "Manager(s)" has the meaning set forth in Sections 7.1 and 7.2.

     "Mastromauro"  means  Anthony  Mastromauro,  an individual residing at 1029
Park Avenue, Hoboken, New Jersey 07030 and a member of Identity.

     "Maximum  Preferred  Return"  means the sum of the Minimum Preferred Return
plus Five Hundred Thousand Dollars ($500,000).

     "Member"  and "Members" have the meanings set forth in the preamble hereto,
including any Additional Members.

     "Minimum Preferred Return" means a Ckrush's aggregate Capital Contributions
to  the  Company,  plus  twenty  percent  (20%)  of  Ckrush's  aggregate Capital
Contributions to the Company, plus the aggregate amount of Net Loss allocated to
Ckrush.

                                      -3-
<PAGE>

     "Net  Income" and "Net Loss" for each fiscal year or part thereof means the
income and loss of the Company for that period, as determined for federal income
tax purposes.

     "Ownership  Interest"  of  a  Member  at  any  time  means the legal and/or
beneficial ownership interest of such Member in the Company.

     "Person"  means  any  individual,  sole  proprietorship, partnership, joint
venture,  limited  liability  company,  limited  liability  partnership,  trust,
estate,  unincorporated  organization,  association, corporation, institution or
other entity.

     "Term" is defined in Section 2.5 of this Agreement.

     1.2  Other  Definitions.  Certain  additional  defined  terms  used in this
Agreement have the meanings specified throughout the Agreement.

                                    ARTICLE 2

                               GENERAL PROVISIONS
                               ------------------

     2.1     Formation.  The  Company  was  formed  pursuant to the Act when the
Certificate  was  filed  with the Secretary of State of the State of Delaware in
accordance  with  the  Act.

     2.2     Name.  The  name  of the Company is "Identity Films & Company, LLC"
or  such  other  name  as  may  be  designated  by  the  Managers.

     2.3     Business.  The business of the Company (the "Business") shall be to
arrange,  develop  and  produce  or  arrange  for  the  production  of all film,
television,  music, publishing and related properties of Identity and of Ckrush,
in  any  media,  whether  or  not  currently  existing,  including potential and
prospective  projects,  during  the  Term  of  this  Agreement.  The  Company is
authorized  to  take  any  and  all  legal  measures  that  may  assist  it  in
accomplishing  the  foregoing  purposes  and  to do all other things that may be
necessary,  incidental  or  convenient  in  connection  therewith.

     2.4     Office.  The  principal  place  of business of the Company shall be
located at Identity Films c/o Lindsay Wineberg & Assoc., 11835 W. Olympic Blvd.,
Suite  435,  West  Los Angeles, CA 90064, or such other location as the Managers
may  determine  from  time  to  time.

     2.5     Term.  The  term  of  the  Company commenced upon the filing of the
Certificate  with  the  Secretary  of State of the State of Delaware on June 23,
2005 and shall continue for two (2) years thereafter (the "Initial Term") unless
terminated  earlier by the terms of this Agreement, the unanimous consent of the
Members,  operation  of  law or judicial decree.  Upon expiration of the Initial
Term,  Ckrush  in its sole discretion, subject to Ckrush's obligations set forth
in  Section  4.2,  shall  have five (5) consecutive one (1) year renewal options
(each,  a  "Renewal  Term")  exercisable  upon the provision of thirty (30) days
written notice to the other Member(s) (the Initial Term and the Renewal Term(s),
if  any,  together  are  referred  to  herein  as  the  "Term").

                                      -4-
<PAGE>

     2.6     Ownership  of  Company  Property.  All  property  contributed to or
acquired by the Company (including all intellectual property associated with the
Business),  real  or  personal,  tangible  or  intangible, shall be owned by the
Company  as  an  entity,  and  no Member, individually, shall have any ownership
interest  therein.

     2.7     Registered Office; Registered Agent.  The initial registered office
of the Company maintained in the State of Delaware in accordance with the Act is
located  at  2711  Centreville  Road,  Suite 400, Wilmington, New Castle County,
Wilmington, Delaware 19808 or at such other place as the Managers may designate.
The  initial  registered  agent of the Company in the State of Delaware shall be
Corporation  Service Company or such other Person as the Managers may designate.

     2.8     Exclusivity.  During  the  Term  of  this  Agreement,  Fielding and
Mastromauro,  may  not, directly or indirectly, for the benefit of themselves or
for  any  other  Person, firm, corporation, partnership, joint venture, trust or
association,  compete  with the Business of the Company, including by acquiring,
developing,  financing  or operating, or as an employee, officer or director of,
any  Person  who  competes  with  the Company.  Each of Fielding and Mastromauro
shall  devote  his or her full working time, professional skill and attention to
the Business of the Company. In the event of the dissolution of Identity for any
reason, or in the event that either or both of Mastromauro or Fielding withdraws
from  Identity,  Ckrush  shall have the sole right to determine whether to admit
either  Fielding  or  Mastromauro  (or both) as members of the Company, and will
admit  at  least  one  of  them  if  he  or  she  agrees  to  become  a  member.

                                    ARTICLE 3

                             ACCOUNTING AND REPORTS
                             ----------------------

     3.1     Fiscal  Year.  The  fiscal  year  of the Company shall begin on the
first  day of January and end on the last day of December of each calendar year.

     3.2     Books of Account and Financial Records.  The Company shall maintain
complete  and  accurate books of account and financial records in which shall be
entered  each  transaction  of  the  Company. The books of account and financial
records  shall  be  kept  on  the  cash  basis  and  maintained  and reported in
accordance  with  generally accepted accounting principles consistently applied,
and  shall  be  maintained  at  the  principal  office  of  the  Company.

     3.3     Annual  Report.  On or before March 15 of each year or the due date
of  the  relevant  return  (including any extensions thereto), the Company shall
mail to each Member such information as is necessary for the preparation by each
Member of its federal and state income tax returns and a copy of the full income
tax  return  prepared by the Company's independent certified public accountants.

     3.4     Bank  Account.  The  funds of the Company shall be deposited in the
name of the Company in one or more bank accounts designated by the Managers, and
shall  not  be  commingled  or used for any purpose other than Company business.
Withdrawals  from  such accounts shall be made upon the signature of such Person
as  the  Managers  may designate, except that withdrawals in excess of $7,500.00
shall  require  the  signature  of  Ckrush,  not  to be unreasonably withheld or
delayed  for  items  provided  for  in  the  Company's  Budget.

                                      -5-
<PAGE>

     3.5     Loans.  No  loans  shall be contracted on behalf of the Company and
no  evidences  of  indebtedness shall be issued in its name unless authorized by
the  Managers.

     3.6     Taxation.  The  Members acknowledge that it is their intention that
the  Company  be  treated  as  a  partnership  for  state and federal income tax
purposes  and  the  Members agree that they shall take no action or omit to take
any  action that would affect the tax treatment of the Company as a partnership.
The  Members  further agree that, in the event that it shall become necessary at
any  time  as  a  result of any change to any law or regulation, they shall take
such  action as shall be necessary to maintain the treatment of the Company as a
partnership  for  income  tax purposes. Salaries paid to the members of Identity
shall  be  deemed  guaranteed  payments  under  the  Code.

     3.7     Right  of  Inspection.  Any  Member  and  its respective attorneys,
accountants  and  other  advisors,  shall  have  the  right  to  examine, at any
reasonable  time(s)  for  all  purposes,  the  books  and records of account and
minutes and records of the Company and to make copies thereof.  Upon the written
request  of any Member, the Company shall mail to such Member the Company's most
recent  financial  statements, showing in reasonable detail the Company's assets
and  liabilities  and  the  results  of  its  operations.

     3.8     Budget.  Attached  as  Schedule  C  to this Agreement is the annual
budget  for the Company (the "Budget") for the first year of operation.  Budgets
for  future  years shall be subject to Ckrush's approval, not to be unreasonably
withheld  provided  the amounts are consistent with Ckrush's funding obligations
to the Company. The first year Budget shall serve as the basis for the budget in
each year thereafter. Actual expenditures after the first year may deviate by up
to  twenty  percent (20%) for any line item provided that total expenditures are
within  the  total  Budget.

     3.9     Members'  Expenses.  Each  Member  shall  bear  its  own  legal,
accounting  and  administrative  expenses  incurred  in  connection  with  this
negotiation  and  execution  of  this  Agreement.

     3.10     Reimbursement.  Identity  has incurred expense for option payments
with  respect  to  the Contributed Properties set forth opposite such property's
name  on  Schedule  A  attached  hereto.  Identity  shall  be reimbursed for the
expenses  listed on Schedule A if and only if the Company receives financing for
such  properties  that  specifically  provides  for  such  reimbursement.

                                    ARTICLE 4

                   CAPITAL CONTRIBUTIONS AND CAPITAL ACCOUNTS
                   ------------------------------------------

     4.1     Capital  Contribution.  During  the Initial Term, Ckrush shall make
the Capital Contributions to the Company in the amounts and at the intervals set
forth  on  Schedule  A  attached hereto, in exchange for its Ownership Interest.
Identity  shall  contribute  all  revenue  derived from the Identity Contributed
Properties.  During  the  first  year  of  the  Initial Term, Ckrush may, in its
reasonable determination, make an additional Capital Contribution to the Company
of  $20,000.

                                      -6-
<PAGE>

     4.2     Additional  Capital Contributions.  In the event that Ckrush elects
to  exercise any of its option(s) to renew this Agreement upon expiration of the
Initial Term or any subsequent Renewal Term(s), Ckrush shall make the additional
Capital  Contributions  as  set  forth  on  Schedule  B,  attached  hereto.

     4.3     Additional  Members.  Any  Person  admitted  to  the  Company as an
Additional  Member after the Effective Date shall contribute such amount of cash
and/or  property  to  the  capital of the Company, at such time or times, as the
Managers  shall  determine  pursuant  to  Section  7.3  (g).

     4.4     Capital  Accounts.  A separate Capital Account shall be established
for  each  Member  and  maintained in accordance with the provisions of Treasury
Regulation Section 1.704-1(b)(2)(iv). Each Member's Capital Account shall be (i)
increased  by such Member's Capital Contributions and by such Member's allocable
share of Net Income and items of Company income and gain, (ii) decreased by such
Member's allocable share of Net Loss and items of Company loss and deduction and
by  the  amount of cash and the net fair market value of property distributed by
the  Company to such Member, and (iii) otherwise adjusted in the manner provided
in  this  Agreement.

     4.5     Return of Capital Contributions; Interest.  No Member will have the
right  to  demand  the  return  of such Member's Capital Contribution, except as
expressly  provided in this Agreement. No Member will have the right to withdraw
all or any part of such Member's Ownership Interest in the Company, to receive a
return of or interest on its Capital Contributions or the balance in its Capital
Account, or to receive any distributions or payments from the Company, except as
expressly  provided  in  this  Agreement.

     4.6     No  Other  Contributions.  No  Member shall be required to make any
additional  capital  contributions  to  the Company except as otherwise provided
herein  or  to  restore  a  negative  balance  in  its  Capital  Account.

                                    ARTICLE 5

                                   ALLOCATIONS

     5.1     Allocation  of  Net  Income.  Subject  to Sections 5.3 and 5.4, Net
Income  for any fiscal year or portion thereof shall be allocated to the Members
as  follows:

        (a)  Net  Income  shall be allocated eighty-five percent (85%) to Ckrush
and  fifteen  percent  (15%)  to  Identity  until  Ckrush has been allocated its
Minimum Preferred Return; and

                                      -7-
<PAGE>

        (b)  After  Ckrush  has been allocated its Minimum Preferred Return, Net
Income  shall be allocated sixty percent (60%) to Ckrush and forty percent (40%)
to Identity until Ckrush has been allocated its Maximum Preferred Return; and

        (c)  After  Ckrush  has been allocated the Maximum Preferred Return, Net
Income  shall be allocated fifty percent (50%) to Ckrush and fifty percent (50%)
to  Identity,  except  that  if  Ckrush  is  required  by  applicable accounting
principles  to  have  more  than  a  50%  profits  interest in order to have the
Company's  financial results consolidated with those of Ckrush, Net Income shall
be  allocated  fifty-one percent (51%) to Ckrush and forty-nine percent (49%) to
Identity;  provided  that  Ckrush  will  reimburse Identity for such one percent
differential  to  the  extent that such reimbursement does not limit or restrict
its  ability  to have the Company's financial results consolidated with those of
Ckrush;

     Notwithstanding  anything  to the contrary in this Agreement or the Act, in
the event all Ownership Interests are sold to a third party, the net proceeds of
such  sale  (after  the  payment  of  all expenses of such transaction) shall be
allocated  among  the  Members  as  set  forth  above.

     5.2     Allocation  of Net Loss.  Subject to Sections 5.3 and 5.4, Net Loss
for  any  fiscal  year  or  portion thereof shall be allocated to the Members as
follows:

        (a)  first, to the Members to the extent that each Member has a positive
Capital Account, pro rata to their respective Capital Accounts; and

        (b) second, to the Members in equal shares.

     5.3     Qualified  Income  Offset.  Notwithstanding  any other provision of
this  Article  5,  except  Section  5.4,  if  a  Member unexpectedly receives an
adjustment,  allocation or distribution described in Treasury Regulation Section
1.704-1(b)(2)(ii)(d)(4),  (5) or (6) that creates or increases a deficit in such
Member's  Adjusted  Capital  Account  Balance,  items of Company income and gain
shall  be  allocated  to  such  Member in the amount and proportion necessary to
eliminate  such deficit Adjusted Capital Account Balance as quickly as possible,
provided,  however,  that items of Company loss and deduction shall subsequently
be  allocated  among  the  Members  so  as  to achieve as nearly as possible the
results  that would have been achieved had this Section 5.3 not been included in
this  Agreement  (except  that no allocation shall be made that would contravene
Treasury  Regulation  Section 1.704-1(b)(2)(ii)(d)). The items of Company income
or  gain  (and  subsequent loss or deduction) allocated pursuant to this Section
5.3  in  any  fiscal  year  of  the  Company  shall not be taken into account in
calculating  Net  Income  or  Net  Loss  for  such fiscal year that is otherwise
allocable  pursuant  to  this  Article  5.

     5.4     Allocations Attributable to Nonrecourse or Member Nonrecourse Debt.
In  the  event  the Company incurs nonrecourse debt, whether advanced by a third
party  or by a Member, that the Managers determines is subject to the provisions
of  Treasury Regulation Section 1.704-2, the Managers shall allocate Net Income,
Net  Loss  and  items  of  Company  income, gain, loss and deduction between the
Members  in such manner as the Managers, in their sole discretion, determines to
be  required  pursuant  to  Treasury  Regulation  Section  1.704-2  (including
implementation  of  a  minimum  gain  chargeback  or  "partner  minimum  gain
chargeback,"  as  defined  in  such  Treasury  Regulation).

                                      -8-
<PAGE>

     5.5     Tax  Allocations.

        (a)  Except  as  provided below in Section 5.5(b), Company income, gain,
loss,  deduction  and credit, as calculated for tax purposes, shall be allocated
between  the Members, to the extent possible, in accordance with the allocations
of  the  corresponding  Net  Income, Net Loss or items thereof among the Members
pursuant to Sections 5.1 through 5.4.

        (b)  Income,  gain,  loss,  deduction  and credit, as calculated for tax
purposes,  with  respect  to (i) property contributed to the Company by a Member
and  (ii)  Company  property that has been revalued shall be allocated among the
Members  in  accordance  with  the principles of Code Section 704(c), using such
method  as  shall  be  selected  by  the  Managers, so as to take account of the
variation,  at  the  time of contribution or revaluation, between the property's
tax  basis  and book value, as required pursuant to Treasury Regulation Sections
1.704-1(b)(4)(i) and 1.704-3.

     5.6     Curative Allocations.  In the event there is an ambiguity regarding
the  application  of  this Article 5 to a particular item of income, gain, loss,
deduction  or  credit,  the  item  shall  be allocated among the Members in such
proportions  as the Mangers deem equitable, practicable and consistent with this
Agreement,  the  Treasury  Regulations  and  other  applicable  laws;  provided,
however,  that  no  such  allocation  by  the Managers shall discriminate in any
material  respect  against  any  Member.

     5.7     Section  83(b)  Election.  The Company and Ckrush will cooperate in
any  election  made  by Identity or its members under Section 83(b) of the Code.

                                    ARTICLE 6

                                  DISTRIBUTIONS
                                  -------------

     6.1     Discretionary  Distributions. The Company, in the discretion of the
Managers, shall distribute cash or other Company property to the Members at such
time  or times as the Managers deem advisable.  Subject to Section 6.3, any such
distribution  shall  be  made  to  the Members in proportion to their respective
positive  Adjusted  Capital  Account  Balances,  after  payment  of  the minimum
distributions  pursuant  to  Section  6.2  hereof.

     6.2     Minimum  Distributions.  The  Company  shall  make  minimum

distributions of cash, if available, to the Members not less than annually on or
before  April  1  in an amount equal to any federal and state tax liability that
the  Members incur as a result of Net Income being allocated to the Members. For
this  purpose,  such  tax  liability is assumed to be forty percent (40%) of Net
Income.  In  addition,  within  120  days after the end of each fiscal year, the
Company  will distribute any available cash to the Members, except to the extent
that  the  Managers  affirmatively  determines  not  to  make such distribution.

     6.3     Distribution  Policy.  Notwithstanding  any other provision of this
Agreement,  distributions  will  be  made  to  Members  in  accordance with such
Member's  Allocation  of  Net  Income,  as  set  forth  in  Section  5.1  above.

                                      -9-
<PAGE>

     6.4     Reliance  on  Records.  Distributions  will  be  made  only  to the
Persons  who, according to the books and records of the Company, are the holders
of record of the Ownership Interests in the Company, or the holders of record of
the  Ownership  Interests in respect of which such distributions are made on the
actual date of distribution. None of the Company, any Member, Manager or officer
of  the Company shall incur any liability for making distributions in accordance
with  the  provisions  of  the  preceding  sentence, whether or not the Company,
Member,  Manager  or  officer  of  the  Company  has  knowledge or notice of any
transfer  or  purported transfer of any Ownership Interest in  the Company which
has  not  been  approved  by  the  Managers.

                                    ARTICLE 7

                            MANAGEMENT OF THE COMPANY
                            -------------------------

     7.1     Management  and  Operations of the Company.  The overall management
and  control  of  the business and affairs of the Company shall be vested in the
Managers,  provided  that  Fielding  and  Mastromauro  shall  be responsible for
administering  the Company's business in the ordinary course within the confines
of  the Budget and shall be responsible for creative control of the Company. Any
projects  or properties that Fielding or Mastromauro pursues shall be subject to
consultation  with  Ckrush,  and  Ckrush  shall  have  the  right,  in  its sole
discretion, to serve as Executive Producer, or appoint other appropriate parties
as  Executive  Producer,  on any such projects or properties,  in either case to
the  extent possible, and for which Identity will use its best efforts to secure
for  Ckrush.

     7.2     Managers.  At  all  times there shall be four (4) Managers, of whom
to  two  (2)  shall  be  appointed  by Ckrush, and two (2) shall be appointed by
Identity.  Each  Manager shall be entitled to one (1) vote on any matter that is
subject  to  Manager  approval.

     7.3     Major Decisions.  Any of the following rights, decisions and powers
shall  be  deemed  a  "Major  Decision",  which  shall  require the consent of a
majority  of  the  Managers:

        (a)  to  cause  the  Company  to  acquire  any real property or interest
therein;

        (b) to cause the Company to invest in any securities;

        (c)  to cause the Company to incur or refinance any debt, whether or not
secured by any real estate or other assets owned by the Company;

        (d) to cause the Company to acquire or enter into any contracts;

        (e)  to  cause  the  Company  to  assign,  transfer, pledge, compromise,
release,  or  arbitrate  any  claims  or debts of the Company, or to commence or
defend litigation with respect to the Company;

        (f)  to cause the Company to expend any funds in excess of $7,500, or to
lend  or  borrow  any  monies,  or  to  lease,  sell or otherwise dispose of any
property or assets of the Company;

                                      -10-
<PAGE>

        (g)  to  amend  this  Agreement  including  any amendment that would add
additional Members to the Company;

        (h)  to  cause  the  Company  to settle, compromise or adjust any claim,
obligation, debt, demand, suit or judgment against the Company;

        (i) to cause the Company to make any distribution of cash or property to
the Members except as specifically provided herein;

        (j)  to  cause  the Company to execute, acknow-ledge and deliver any and
all documents necessary to effectuate any of the foregoing;

        (k) to cause the Company to hire any additional personnel, except for
positions  provided  for  in  the  Budget;  and

        (l) to approve any press release.

     7.4     Deadlock.  Prior  to  Ckrush's  receipt  of  the  Maximum Preferred
Return  and  any  other  funds  advanced  to  the Company, in the event that the
Managers  are  unable  to  agree on any matter pertaining to the Company or this
Agreement,  the  vote  of  the  Managers elected by Ckrush shall prevail.  After
Ckrush  has received its Maximum Preferred Return and any other amounts advanced
by  Ckrush to the Company, in the event that the Managers are unable to agree on
any  matter pertaining to the Company or this Agreement, they shall first submit
the disagreement to a third party selected by both Members to attempt to resolve
the  disagreement  in  good faith. In the event the disagreement is not resolved
through  such  third  party,  the  disagreement  shall  be  submitted to binding
arbitration.  The  arbitration shall be conducted by a single arbitrator. Unless
the  Members  agree  otherwise,  the  arbitration shall be conducted in New York
City. An ex parte order may be entered in the event a party fails to participate
in  the  arbitration.  The  arbitrator shall render written findings of fact and
conclusions  of  law,  as  applicable.  The  decision of the arbitrator shall be
enforceable  in  any  court of competent jurisdiction. The arbitrator shall have
the  discretion  to  award  attorney  fees  and  costs  to the prevailing party.

     7.5     Compensation.  No Member or Manager shall receive any salary, fees,
commissions  or  other compensation for services rendered to the Company, unless
such  payment  has  been  approved  in  writing by Ckrush and is included in the
Budget,  or  is  provided  for  in  this  Agreement.  Upon the execution of this
Agreement,  Cedric  Kushner  Promotions,  Inc.,  the  parent  company  of Ckrush
("Promotions"),  shall  provide  Fielding  and  Mastromauro with incentive stock
options or warrants to acquire (a) 100,000 shares of Promotions' common stock in
the  aggregate  that  will vest upon execution of this Agreement and (b) 100,000
shares  of  Promotions' common stock in the aggregate that will vest upon Ckrush
being  allocated the Maximum Preferred Return. In both cases, the exercise price
of  the option or warrants will be the closing price of Promotions' common stock
on  the  date  of  this  Agreement.  Any additional options or warrants shall be
granted  in  the  sole  discretion  of  Promotions  and  Ckrush.

     7.6     Meetings  of the Managers.  Meetings of the Managers may be held at
any  place  within or without the State of Delaware as the Managers from time to
time  may  fix  or  as shall be specified in the respective notice or waivers of
notice  thereof.  Notice  of each meeting of the Managers shall be given to each
Manager  by  mail  not  less  than  ten  (10) days in advance of the meeting, or

                                      -11-
<PAGE>

personally,  or  by  telephone,  not  less  than five (5) days in advance of the
meeting.  Notice  of  a  meeting  need  not  be given to any Manager who signs a
waiver of notice whether before or after the meeting, or who attends the meeting
in person.  Actions taken at a meeting of the Managers shall be kept in a record
of  its  proceedings  that shall be maintained by the Managers for the review of
any  Member  who  so  desires  to  review  the  meeting  records.

     7.7     Actions of the Managers.  Except as otherwise specifically required
in  this  Agreement  or in the Act, whenever any action, including any approval,
consent,  determination,  resolution or decision, is to be taken or given by the
Managers under this Agreement or the Act, it shall be authorized by the majority
vote  of  the Managers, which may be taken at a meeting or by written consent in
accordance  with  Section  7.8  hereof.

     7.8     Action  of  the Managers Without a Meeting.  Any action required or
permitted  to  be  taken  at  a  meeting  of the Managers may be taken without a
meeting  if,  prior  or  subsequent  to  such  action,  all of the Managers then
entitled  to vote consent thereto in writing and such written consents are filed
with  the  minutes of the proceedings of the Managers. All such actions shall be
reported  to  the  Managers  at  its  next  meeting  following  any such action.

     7.9     Telephone Conference Meetings of the Managers.  Any or all Managers
may  participate in any meeting of the Managers by means of conference telephone
or  any  other  means of communication by which all persons participating in the
meeting  are  able  to  hear  each  other.

     7.10     Liability  of the Managers.  Neither the Managers nor any of their
agents,  partners,  employees  or  counsel  shall  be  liable,  responsible  or
accountable  in damages or otherwise to the Company or any Member for any action
taken  or  failure  to  act  (even  if such action or failure to act constituted
negligence  on  such Person's part) on behalf of the Company within the scope of
the  authority conferred on the Manager by this Agreement or by law, unless such
act or failure to act was performed or omitted willfully or intentionally and in
bad  faith.

     7.11     Duties  of the Managers.  The Managers shall take all actions that
may  be  necessary  or  appropriate for the conduct of the Company's business in
accordance  with  the  provisions  of  this  Agreement  and  applicable laws and
regulations.

     7.12     Authority  to  Act  for  the Company.  The Managers shall have the
authority  to  act  for  and  bind  the  Company,  including with respect to the
execution  and  delivery of any document or instrument on behalf of the Company.

     7.13     Financing.  Ckrush  shall  have  the  right  of  first  refusal to
provide  or  to  arrange  for  financing for each project or property pursued or
developed  by  the  Company,  Identity  or  its principals.  Any such project or
property  shall  be  presented  to Ckrush along with the terms and conditions of
any  financing  proposal.  Ckrush  shall  have  a  period  of  thirty  (30) days
following  receipt of such a proposal to advise Identity in writing that it will
provide  or arrange for such financing. A failure to so respond within such time
period  shall  terminate Ckrush's financing rights with respect to that property

                                      -12-
<PAGE>

or project on those terms. However, if subsequent to such thirty (30) day period
but  prior to the closing with a third party financing source, Ckrush is able to
provide  such  financing  in accordance with the proposal, then the Company will
utilize  the  financing provided by or through Ckrush to the extent it can do so
without  a  material  adverse effect to the Company. Moreover, in the event that
terms  more  favorable  to  the  lender  or  investor are proposed, such revised
financing  opportunity  will  again  be  offered to Ckrush for a thirty (30) day
period  in  accordance  with  this  paragraph.

                                    ARTICLE 8

                                    OFFICERS
                                    --------

     8.1     Appointment  by  the  Managers.

        (a)  In addition to the initial officers of the Company named in Section
8.2 hereof, the Managers may, from time to time, delegate to one or more Persons
such  authority  and duties as the Managers may deem advisable. In addition, the
Managers  may assign titles to any such Person. Any number of titles may be held
by  the  same  Person. Any delegation or assignment of title(s) pursuant to this
Section  8.1  or Section 8.2 hereof may be revoked at any time by the act of the
Managers, with or without notice, with or without cause.

        (b)  Any  Person dealing with the Company, other than a Member, may rely
on the authority of the Managers or any officer in taking any action in the name
of the Company without inquiring into the provisions of this Agreement or
compliance  herewith.

     8.2     Initial  Officers.  The  initial officers of the Company, who shall
hold  office  until their earlier death, resignation or removal by the Managers,
shall  be  the  following:

Name                                Office(s)
----                                ---------
Jeremy  Dallow                      President
Anthony  Mastromauro                Vice  President
James  DiLorenzo                    Treasurer
Lisa  Fielding                      Secretary

     8.3     Liability  of Officers.  No officer of the Company shall be liable,
responsible  or accountable in damages or otherwise to the Company or any Member
for  any  action  taken or failure to act (even if such action or failure to act
constituted  negligence  on  such Person's part) on behalf of the Company within
the  scope  of  the  authority  conferred  on the officer of the Company by this
Agreement  or by law, unless such act or failure to act was performed or omitted
willfully  or  intentionally  and  in  bad  faith.

8.4     Termination.  Ckrush  shall  have  the  right,  in  its  sole reasonable
discretion,  to  terminate  any  officer  or  employee of the Company (including
without  limitation  Fielding  and  Mastromauro) for the conviction of a felony.

                                      -13-
<PAGE>

                                    ARTICLE 9

                   TRANSFER OF OWNERSHIP INTEREST RESTRICTIONS
                   -------------------------------------------

     9.1     General Restrictions on Transfer. No Member may Transfer all or any
portion  of  its  Ownership Interest except in accordance with the provisions of
this  Article  9.  Any attempted Transfer in violation of the preceding sentence
shall  be  deemed  null and void for all purposes and of no force or effect, and
the  Company  will  not  record  any  such  Transfer  on  its books or treat any
purported  transferee  as  the owner of such Ownership Interest for any purpose.
Except  as  otherwise  provided in this Article 9, no Member may Transfer all or
any  portion  of  its  Ownership  Interest at any time to any Person without the
prior  written  consent  of the other Member(s), which consent may be granted or
withheld  in  the  sole  discretion  of  the  other  Member(s).

     9.2     Status  of  Members.  Notwithstanding  anything  to the contrary in
this  Agreement,  no transferee of any Ownership Interest received pursuant to a
Transfer  shall become a Member in respect of or be deemed to have any ownership
rights  in the Ownership Interest so Transferred unless the purported transferee
is  admitted  as  a  Member  as  set  forth  below.

     9.3     Right  of  First  Offer.

        (a)  After  expiration  of  the Term of this Agreement, if either Member
receives  a  bona  fide offer (a "Transfer Offer") to Transfer any or all of its
Ownership  Interests  then owned by it (the "Transfer Interests") from any third
party  (an  "Offeror"),  which  such  Member  (the  "Transfer Member") wishes to
accept,  the  Transfer  Member  shall  give prompt written notice (the "Transfer
Notice")  thereof  to  the  other  Member (the "Remaining Member"). The Transfer
Notice  shall set forth (i) the identity of the Offeror, (ii) the price and form
of  consideration  offered  for the Transfer Interests, (iii) all other material
terms  and conditions of the Transfer Offer and (iv) an offer to transfer to the
Remaining  Member,  on  terms  and  conditions  substantially identical to those
contained  in  the  Transfer  Notice  (except  that  if  any  portion  of  the
consideration  is  payable  other than in cash, the Remaining Member may instead
pay  the  fair  market  value of such other consideration in cash), the Transfer
Interests in accordance with this Section 9.3.

        (b)  The  Remaining  Member shall have the irrevocable right to purchase
any  or  all  of the Transfer Interests at the same price and upon the terms and
conditions set forth in the Transfer Notice.

        (c)  If  the  Remaining  Member  does  not  purchase all of the Transfer
Interests,  the  Transfer  Member  shall  have the right to sell the unpurchased
portion  of  its  Transfer  Interests to the Offeror, on terms no more favorable
than  as  set  forth  in  the  Transfer  Notice,  within  thirty (30) days after
expiration  of  the  Acceptance Period (as defined below). If such Transfer does
not  occur  within  such  thirty  (30)  day  period,  all of the restrictions on
transfer contained in this Article 9 shall again be in force and effect.

        (d)  The  right  of  first  offer  provided in this Section 9.3 shall be
exercised  by  delivery  of  a  written  notice from the Remaining Member to the
Transfer  Member (the "Acceptance Notice") not later than thirty (30) days after
delivery  of the Transfer Notice to Ckrush (which period shall be referred to as

                                      -14-
<PAGE>

the  "Acceptance  Period").  The Acceptance Notice shall state (i) the amount of
Transfer Interests that the Remaining Member will purchase and (ii) evidence
(reasonably  satisfactory to the Transfer Member) that such election to purchase
is  either  fully  financed  or  subject  to  a bona fide third party commitment
(subject  only to customary "market out" and funding conditions) to finance such
purchase.  The  closing of any purchase pursuant to the exercise of the right of
first offer shall be on a date that is not later than thirty (30) days after the
delivery  of  the  Acceptance  Notice  to  Identity.

     9.4     Procedures for Transfer.  Subject in all events to the restrictions
on  transfer contained in this Article 9, no transfer of Ownership Interests may
be  completed  until  the  prospective transferee is admitted as a Member of the
Company  by executing and delivering to the Managers a written undertaking to be
bound  by  the  terms  and  conditions  of this Agreement. Upon the amendment of
Schedule  A  by  the  Managers  and  the  satisfaction  of  any other applicable
conditions, such prospective transferee shall be admitted as a Member and deemed
listed  as  such  on  the  books  and  records  of  the  Company.

     9.5     Limitations.   Notwithstanding  anything  to  the  contrary in this
Agreement,  no  Ownership  Interest  may  be transferred and the Company may not
issue  any  Ownership Interest unless (a) such transfer or issuance, as the case
may  be,  shall not affect the Company's existence or qualification as a limited
liability  company under the Act, (b) such transfer or issuance, as the case may
be, shall not cause the Company to be classified as other than a partnership for
U.S. federal income tax purposes, (c) such transfer or issuance, as the case may
be,  shall  not  result  in a termination of the Company under Code Section 708,
unless the Managers determine that any such termination will not have a material
adverse impact on the Members and (d) such transfer or issuance, as the case may
be,  in  the  sole  opinion  of  the Managers, shall not cause the Company to be
classified as a "publicly traded partnership", as defined in Section 7704 of the
Code,  or  classified  as  an  association  taxable as a corporation for federal
income  tax  purposes.

                                   ARTICLE 10

                                 INDEMNIFICATION
                                 ---------------

     10.1     Scope.  The  Company shall indemnify, defend and hold harmless, to
the  fullest  extent  permitted by law, all Managers and officers of the Company
(individually,  an  "Indemnified  Party"),  from and against any and all losses,
claims,  damages,  liabilities,  expenses  (including  reasonable legal fees and
expenses), judgments, fines, settlements and other amounts ("Indemnified Costs")
arising  from  all  claims,  demands, actions, suits or proceedings ("Actions"),
whether  civil,  criminal,  administrative  or  investigative,  in  which  the
Indemnified  Party  may be involved, or threatened to be involved, as a party or
otherwise arising as a result of such Person's status as a Manager or officer of
the  Company,  regardless  of  whether  the  Indemnified Party continues in such
capacity  at  the  time  any  such liability or expense is paid or incurred, and
regardless  of whether any such Action is brought by a third party, a Member, or
by  or  in  the  right of the Company; provided, however, that the provisions of
this  Section 10.1 shall not eliminate or limit the liability of each Manager or
officer of the Company if a judgment or other final adjudication adverse to him,
her  or  it establishes that his, her or its acts or omissions were in bad faith
or involved intentional misconduct or a knowing violation of law or that he, she
or  it  personally gained a financial profit or other advantage to which he, she
or  it  was  not  legally  entitled.

                                      -15-
<PAGE>
     10.2     Reimbursements.  The  Company  shall  pay  or  reimburse,  to  the
fullest extent allowed by law and consistent with Section 10.1 above, in advance
of the final disposition of the proceeding, Indemnified Costs as incurred by the
Indemnified  Party  in connection with any Action that is the subject of Section
10.1  above.

     10.3     Insurance.  The  Managers  may  (but  shall have no obligation to)
cause  the  Company  to purchase and maintain insurance or other arrangements on
behalf  of  the  Indemnified  Parties against any liability asserted against any
Indemnified  Party  and  incurred  by  any  Indemnified  Party  in such Person's
capacity  or  arising  out  of  the Indemnified Party's status in such capacity,
regardless  of  whether  the  Company  would  have  the  power  to indemnify the
Indemnified  Party  against  that  liability  under  Section  10.1.  The
indemnification  provided  by  this Article 10 shall be in addition to any other
rights  to which the Indemnified Parties may be entitled under any agreement, as
a  matter  of  law,  or  otherwise, and shall inure to the benefit of the heirs,
successors,  assigns  and  administrators  of  the  Indemnified  Parties.

     10.4     Interested  Transactions. An Indemnified Party shall not be denied
indemnification  in  whole  or  in  part  under  this  Article  10  because  the
Indemnified  Party  had an interest in the transaction with respect to which the
indemnification  applies if the transaction was otherwise permitted by the terms
of  this  Agreement  or  the  Act.

                                   ARTICLE 11

                                     MEMBERS
                                     -------

     11.1     Meetings  of  the  Members.  Meetings of the Members shall be held
whenever  called by the Managers or Members. Meetings of the Members may be held
at  any  place within or without the State of New York as the Managers from time
to  time may fix or as shall be specified in the respective notice or waivers of
notice  thereof.  Notice  of  each meeting of the Members shall be given by mail
not  less  than  ten  (10)  days in advance of the meeting, or personally, or by
telephone,  not  less than five (5) days in advance of the meeting.  Notice of a
meeting  need  not  be  given to any Member who signs a waiver of notice whether
before  or  after  the  meeting,  or who attends the meeting in person.  Actions
taken at a meeting of the Members shall be kept in a record of their proceedings
that  shall  be  maintained  by  the Members for the review of any Member who so
desires  to  review  the  meeting  records.

     11.2     Actions  of  the Members.  Except as otherwise provided herein, in
order  to  constitute  an  act of the Members, an action must be approved by the
majority  vote  of  the  Members  then  entitled  to  vote.

     11.3     Vote by Proxy.  Any Member, by an instrument in writing, may grant
a  proxy  of  its voting rights to its legal counsel or to another Member.  Each
proxy  will  be  effective  only  for  the  meeting  or  meetings of the Members
specified  therein.

     11.4     Action  of  the  Members without a Meeting. Any action required or
permitted to be taken at a meeting of the Members may be taken without a meeting
if, prior or subsequent to such action, all of the Members then entitled to vote
consent  thereto in writing and such written consents are filed with the minutes
of  the  proceedings  of the Members.  All such actions shall be reported to the
Members  at  their  next  meeting  following  any  such  action.

                                      -16-
<PAGE>

     11.5     Telephone  Conference Meetings of the Members.  Any or all Members
may  participate  in any meeting of the Members by means of conference telephone
or  any  other  means of communication by which all persons participating in the
meeting  are  able  to  hear  each  other.

     11.6     Limited  Liability.  The Members will not be personally liable for
any  obligations  of the Company and, except as otherwise provided herein, under
the  Act  or  any  other  applicable  law,  will  have  no  obligation  to  make
contributions to the Company in excess of their respective Capital Contributions
or  to  restore  a  negative  balance  in  its  Capital  Account.

     11.7     No  Agency  or  Authority.  No  Member  is an agent of the Company
solely  by  virtue of being a Member, and no Member has the authority to act for
the  Company  solely  by  virtue  of  being  a  Member.

     11.8     Access  to  Books  and Records. Any Member shall have the right to
examine  and  audit, at any reasonable time or times for all purposes, the books
and  records  of  account  and minutes and records of Members and to make copies
thereof  and  to  enter upon the office or officers or property or properties of
the Company. Such inspection may be made by any agent or attorney of the Member.
Upon the written request of any Member of the Company, the Company shall mail to
such  Member  the  Company's  most  recent  financial  statements,  showing  in
reasonable  detail  the  Company's assets and liabilities and the results of its
operations.  Without limiting the foregoing, the Members acknowledge that Ckrush
is  a  subsidiary  of  a  publicly  traded  company  subject  to  the  reporting
requirements  of  the  securities  laws,  and  the  Company shall take all steps
necessary  for  Ckrush  and  its  parent  corporation  to comply with such laws.

11.9     Miscellaneous  Obligations.

          (a)     Quarterly Status Reports.  Identity shall generate and deliver
to  Ckrush  quarterly financial and business development reports, in such detail
as  Ckrush  shall  reasonably  require.

          (b)     Use  of  Address.  The  Company shall permit Ckrush to use the
Company's address in Los Angeles, California as if it were Ckrush's for purposes
of  business  cards,  mail  delivery,  and  the  like.

                                   ARTICLE 12

                           DISSOLUTION OF THE COMPANY
                           --------------------------

     12.1     Dissolution.  Subject  to  the Act, the Company shall be dissolved
and  its  affairs  shall  be  wound  up  upon  the  earliest  to  occur  of:

        (a)  the  unanimous  written  consent  of  the  Members  to dissolve the
Company;
                                      -17-
<PAGE>

        (b)  the sale or distribution by the Company of all or substantially all
of its assets; or

        (c) The expiration of its Term.

     Any  other provision of this Agreement to the contrary notwithstanding, and
except as otherwise expressly required under the Act, no withdrawal, assignment,
removal,  bankruptcy,  insolvency, death, incompetency, termination, dissolution
or distribution with respect to any Member or any Ownership Interest will effect
a  dissolution  of  the  Company.

     12.2     Liquidation  of  Company  Interests.

     (a)     Liquidation.  Upon  dissolution,  the Company will be liquidated in
an  orderly  manner.  The  Managers  shall  appoint  a liquidator to wind up the
affairs  of the Company pursuant to this Agreement. The Person(s) who act as the
liquidator  under  this Section 13.2 are referred to herein as the "Liquidator".

     (b)     Final  Allocation and Distribution. Upon dissolution of the Company
(whether  or  not  an  early  dissolution),  a  final allocation of all items of
income,  gain, loss and deduction will be made in accordance with Article 5, and
all  of the Company's assets, or the proceeds therefrom, shall be distributed or
used  as  follows  and  in the following order of priority (which order shall be
without  prejudice  to the liability of the Managers to creditors of the Company
under  the  Act  in  the  event  of  the  insolvency  of  the  Company):

          (i)  for  the  payment of the Company's liabilities and obligations to
its creditors and the expenses of liquidation;

          (ii)  to  the  setting up of any reserves that the Liquidator may deem
reasonably necessary for any contingent or unforeseen liabilities or obligations
of the Company; and

          (iii)  to  the Members in accordance with the allocation of Net Income
provisions under Article 5 of this Agreement.

In  the  event  of  a  distribution  in  kind upon liquidation, the Company will
allocate the revenue from the Identity Contributed Properties to Identity to the
extent  possible.

     12.3     Liability  for  Return  of Capital Contributions.  Each Member, by
execution  of  this  Agreement,  agrees  that  liability  for the return of such
Member's  Capital  Contribution  is  limited to the Company's assets and, in the
event  of  an insufficiency of such assets to return the amount of such Member's
Capital Contribution, hereby waives any and all claims whatsoever, including any
claim  for  additional  contributions  that  such  Member  might otherwise have,
against the Company or any of its agents or representatives (in each case in the
absence  of  conviction  of  fraud  or  willful  misconduct  and  a  judicial
determination  that  such  insufficiency  was  caused  by  such fraud or willful
misconduct)  by  reason thereof.  Each Member shall look solely to the assets of
the  Company for all distributions with respect to the Company and such Member's

                                      -18-
<PAGE>

Capital  Contribution  thereto,  and  shall  have  no  recourse  therefor  (upon
dissolution  or  otherwise)  against  the  Company  or  any  of  its  agents  or
representatives.

     12.4     Continuing  Rights  Upon Termination.  Notwithstanding anything in
this Agreement to the contrary, upon expiration or termination of this Agreement
for  any  reason  after  Ckrush  has made its entire Capital Contribution to the
Company under Section 4.1 and Schedule A of this Agreement (i) the Members shall
continue  to  hold  their  existing  rights in the properties or projects of the
Company for as long as such properties or projects generate revenue, (ii) Ckrush
shall  have  a  ten  percent  (10%)  carried  interest  as  an owner (whether as
shareholder,  partner,  member,  tenant  in  common  or  otherwise, including an
interest  it  profits and capital transactions and the right to review financial
records  and  to  vote  on matters to be voted on by the owners) in any projects
developed  by Identity (or any successor in interest thereto), and (iii) for the
initial  twelve  month period following termination, Ckrush shall have the right
of  first negotiation and the right of last refusal in the event of any sale of,
or  financing  of any project by, Identity or its principals.  In the event that
either  Mastromauro  or  Fielding  is no longer a member of Identity, then for a
period  of  five  (5) years following their withdrawal, Ckrush shall have a five
percent  (5%)  carried  interest  in  any  project or property developed by such
departing  member, provided that Ckrush has made its entire Capital Contribution
to  the  Company  under  Section  4.1  and  Schedule  A  of  this  Agreement.

                                   ARTICLE 13

                                   AMENDMENTS
                                   ----------

     This  Agreement  may not be amended except by the written unanimous consent
of  all  of  the  Members.

                                   ARTICLE 14

                                     NOTICES
                                     -------

     All  notices,  requests, demands, claims and other communications hereunder
shall  be  in writing and shall be deemed duly given or made (a) when personally
delivered to the intended recipient (or an officer of the intended recipient) or
when  sent  by  telecopy  or  facsimile followed by the mailing of a copy as set
forth  in  clause  (b) or (c) below; (b) on the business day after the date sent
when  sent  by  national  recognized  overnight courier service; or (c) four (4)
business  days  after it is sent by registered or certified mail, return receipt
requested,  postage  prepaid  if  to  the  Company,  to its address set forth in
Section  2.4,  and  if  to  any Member, to the address set forth in the Preamble
hereof.  Any  party  may change the address to which notices, requests, demands,
claims  and  other  communications  hereunder  are to be delivered by giving the
other  party  notice  in  the  manner  set  forth  herein.

                                      -19-
<PAGE>

                                   ARTICLE 15

                                  MISCELLANEOUS
                                  -------------

     15.1     Entire Agreement.  This Agreement constitutes the entire agreement
between  the  parties  hereto  with  respect  to  the subject matter hereof, and
supersedes  any prior agreement or understanding between the parties hereto with
respect  to  the  subject  matter  hereof.

     15.2     Governing  Law.  This  Agreement  shall be construed in accordance
with  and governed by the internal laws of the State of Delaware, without regard
to  conflicts  of  law  principles.

     15.3     Binding  Effect.  Except  as  otherwise  provided  herein,  this
Agreement  shall  be  binding upon and shall inure to the benefit of the parties
hereto  and  their  respective  legal  representatives,  heirs,  and  permitted
successors  and  assigns.

     15.4     Counterparts.  This  Agreement  may  be  executed in counterparts,
each  of  which  shall be considered an original and all of which together shall
constitute  one  and  the  same  instrument.

     15.5     Separability.  Any  provision of this Agreement that is prohibited
or  unenforceable  in  any  jurisdiction  shall,  as  to  such  jurisdiction, be
ineffective  to  the  extent  of  such  prohibition  or unenforceability without
invalidating  the  remaining  portions  hereof  or  affecting  the  validity  or
enforceability  of  such  provision  in  any  other  jurisdiction.

     15.6     Headings.  The  headings  contained  in  this  Agreement  are  for
reference  purposes  only  and shall not affect the meaning or interpretation of
this  Agreement.

     15.7     Gender  and  Number.  Whenever required by the context hereof, all
pronouns  and  any  variations thereof will be deemed to refer to the masculine,
feminine  and  neuter,  singular  and  plural.

                                      -20-
<PAGE>
     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  this Operating
Agreement  as  their  act  and deed to be effective as of the day and year first
above  written.

Ckrush  Entertainment,  Inc.               Identity  Films,  LLC

By: /s/  Jeremy  Dallow                    By: /s/  Anthony Mastromauro
    -------------------                        ------------------------
Name:  Jeremy  Dallow                      Name:  Anthony  Mastromauro
Title:  President                          Title:  Vice  President

Ckrush  Entertainment,  Inc.               Identity  Films,  LLC

By: /s/  James  DiLorenzo                  By: /s/  Lisa Fielding
    ---------------------                      ------------------
Name:  James  DiLorenzo                    Name:  Lisa  Fielding
Title:  Treasurer                          Title: Secretary

                                      -21-
<PAGE>

                                   SCHEDULE A
                                   ----------

                                  INITIAL TERM
                              CAPITAL CONTRIBUTIONS

<TABLE>
<CAPTION>

<S>     <C>               <C>          <C>        <C>             <C>         <C>         <C>         <C>
        Initial Capital   Additional   Capital    Contributions   as of       June               20,      2005 *
        ----------------  -----------  ---------  --------------  ----------  ----------  ----------  ----------
        Contribution         3 months   6 months        9 months   12 months   15 months   18 months   21 months
        ----------------  -----------  ---------  --------------  ----------  ----------  ----------  ----------
Ckrush  $        114,225  $    78,750  $  78,750  $       78,750  $   86,250  $   86,250  $   86,250  $   60,775
------  ----------------  -----------  ---------  --------------  ----------  ----------  ----------  ----------
<FN>
*  The  Agreement with Identity Films, LLC commence on Signature of the Operating Agreement. Upon Signature, the
initial  capital  contribution is due. In addition to the initial capital contribution, Mastromauro and Fielding
shall  receive  retroactive  Compensation effective May 1, 2005. The amount received as retroactive compensation
shall  be  deducted  from the final capital contribution to be made by Ckrush. For purposes of this computation,
the retroactive Compensation is calculated as $75,000/year for both Mastromauro and Fielding divided by 365 days
multiplied  by  the  days  from  May  1,  2005  until  signing.
</TABLE>

ie.  $75,000/365  X  62  days  (as  of  June  17)  =  $12,739.73  each

 Identity Contributed Properties                   Potential Reimbursement
 -------------------------------                   -----------------------
21  Shots                                                    $0
--------------------------------                   -----------------------
Comeback  to  Sorrento                                   $2,500
--------------------------------                   -----------------------
Detour                                                   $3,000
--------------------------------                   -----------------------
Beer  League                                             $7,000
--------------------------------                   -----------------------
The  Villa  Golitsyn                                     $4,000
--------------------------------                   -----------------------
The  Devil  &  St.  Ann's                                    $0
--------------------------------                   -----------------------
Sunday  Evenings  At  Contessa
Pasqualis                                                    $0
--------------------------------                   -----------------------
State  of  The  Union                                    $5,000
--------------------------------                   -----------------------
The  O'Malley                                            $2,500
--------------------------------                   -----------------------
The  Annie  Mae  Pictou  Story                               $0
--------------------------------                   -----------------------
The  Brand                                              $15,000
--------------------------------                   -----------------------
Wishbones                                               $21,000**
--------------------------------                   -----------------------

**  Includes  $15,000  payable  to  Ckrush

                                      -22-
<PAGE>
                                   SCHEDULE B
                                   ----------

                                   ADDITIONAL
                              CAPITAL CONTRIBUTIONS
                                  RENEWAL TERMS

        (a)  For  the  first  Renewal Term, Ckrush shall make additional Capital
Contributions  equal  to  $345,000  increased  by  five (5) percent, in Ckrush's
reasonable  discretion,  paid  quarterly  (the  "First  Renewal  Term  Capital
Contribution");

        (b)  For  the  second Renewal Term, if any, Ckrush shall make additional
Capital  Contributions  equal  to  the  First  Renewal Term Capital Contribution
increased by five (5) percent, in Ckrush's reasonable discretion, paid quarterly
(the "Second Renewal Term Capital Contribution");

        (c)  For  the  third  Renewal Term, if any, Ckrush shall make additional
Capital  Contributions  equal  to  the  Second Renewal Term Capital Contribution
increased by five (5) percent, in Ckrush's reasonable discretion, paid quarterly
(the "Third Renewal Term Capital Contribution");

        (d)  For  the  fourth Renewal Term, if any, Ckrush shall make additional
Capital  Contributions  equal  to  the  Third  Renewal Term Capital Contribution
increased by five (5) percent, in Ckrush's reasonable discretion, paid quarterly
(the "Fourth Renewal Term Capital Contribution"); and

        (e)  For  the  fifth  Renewal Term, if any, Ckrush shall make additional
Capital  Contributions  equal  to  the  Fourth Renewal Term Capital Contribution
increased  by  five  (5)  percent,  in  Ckrush's  reasonable  discretion,  paid
quarterly.

                                      -23-
<PAGE>
                                   SCHEDULE C
                                   ----------

                                First Year Budget

                      APPROVED ADMINISTRATIVE EXPENSES
                                  YEAR ONE
                ------------------------------------------------
                               (Total Dollars)

                                             YEAR 1        TOTAL

PAYROLL
Anthony Mastromauro - Partner/Producer       75,000
Lisa Fielding - Partner/Producer             75,000
Assistant to Partners                        28,000
Subtotal Salaries                           178,000
                                            -------
Employee Benefits                            12,600
Payroll Tax                                  19,580
TOTAL PAYROLL EXPENSES                      210,180
                                            -------

OPERATIONAL  NON  PAYROLL  EXPENSES
Office Rent                                  40,000
Telephones / Internet                         8,000
Office Supplies and Expenses                  4,000
Messenger / Shipping / Postage                3,600
Subscriptions                                 1,000
Accounting                                   12,000
Legal                                         5,000
Film and Television Markets / Festivals      22,000
Travel / Entertainment                       24,000
Taxes                                        10,000
Insurance                                     3,000
                                            -------
TOTAL NONPAYROLL OPERATIONAL EXPENSES       132,600
                                            -------

TOTAL GENERAL AND ADMINISTRATIVE EXPENSES   342,780        342,780
                                                           =======

Totals  may  not  add  due  to  rounding.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]