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EXHIBIT 10.13    
    

 
  LITERARY PURCHASE AGREEMENT
  -SCREENPLAY-
  
    Dated: As of December 22, 2003    

	PRODUCER:	 	OUT OF THE BLUE PRODUCTIONS, LLC
	 	 	 	 	 	c/o A & A—Frozen Ventures.

1223 Wilshire Boulevard, Suite 810

Santa Monica, California 90403
	

Copy To:	
 	

 	
 	

Robert M. Angel

A Professional Corporation

11601 Wilshire Boulevard, Suite 2200

Los Angeles, California 90025
	

OWNER (Collectively):	
 	
BRETT HUDSON, BURT KEARNS, ALBERT S. RUDDY
	 	 	 	 	 	c/o A & A—Frozen Ventures.

1223 Wilshire Boulevard, Suite 810

Santa Monica, California 90403

        WORK:
That certain unpublished screenplay written by Owner presently entitled "OUT OF THE BLUE" together with the title, themes, contents,
characters and all versions and adaptations thereof. 

1.    PURCHASE PRICE: For good and valuable consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, and in consideration of the payment of the greater of applicable minimum scale pursuant to the Writers Guild of America Basic Agreement, if the project is produced as a union film or
Thirty-Four Thousand Four Hundred Seventy Dollars ($34,470) (the "Purchase Price"), Owner hereby sells, conveys, assigns and hypothecates to Producer all motion picture, television, allied and
subsidiary rights (as specified in Paragraph 2 hereof) in the Work (the "Rights"). 

2.    OWNERSHIP: Upon Owner's receipt of the Purchase Price, Producer shall own, exclusively and forever, throughout
the universe, all rights in all languages in the Work, including, without limitation, the following (subject to the rights reserved by Owner specified in Paragraph 3 below): all motion picture
rights, all television motion picture rights, (including, without limitation, live television rights), all radio rights, all legitimate stage rights,
all home video rights (in any format now known or hereafter invented or devised), and all allied and subsidiary rights, including, without limitation, sequel and remake rights, interactive/multimedia
rights, publishing rights (subject to Paragraph 3 below), novelization rights, music publishing rights, soundtrack album rights, Internet rights, merchandising rights, and promotional and
advertising rights (including, without limitation, the right to broadcast, over radio, television and all other media, advertisements with respect to motion pictures or other productions produced
hereunder). The rights herein granted include the right to distribute, transmit, exhibit, broadcast, and otherwise exploit all motion pictures or other productions produced pursuant to this Agreement
by means of any and all media and devices whether now known or hereafter devised, including, without limitation, video cassettes, DVDs, and discs, and in any and all markets whatsoever. Producer may
in its discretion make any and all changes in, additions to, and deletions from the Work. Producer may use Owner's name, approved likeness, and approved biographical material in and in connection with
the exploitation of the rights granted under this Agreement. Nothing contained in this Agreement shall be construed as requiring Producer to exercise or exploit any of the rights granted to or
acquired by Producer under this Agreement. 

3.    OWNER'S RESERVED RIGHTS: Owner hereby reserves the following rights ("Reserved Rights") in and to the Work; 

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        (a)   All
written publishing rights in and to the Work, including specifically "books on tape," i.e., the undramatic reading by
one individual of the book or an abridged version thereof on an audio-only recording; provided, however, that Producer shall have the customary right (for advertising and publicity
purposes) to broadcast, prepare, publish and copyright publications in newspapers, magazines and periodicals of all types, any synopsis, excerpts, summaries, abridged and/or revised versions of the
Work, resumes and stories (all of which shall collectively be referred to as "synopses" herein) of the Work, or any part thereof, for any motion picture version thereof, no one of which, however,
shall exceed ten thousand (10,000) words in length, and the rights to use said synopses in heralds, programs, booklets, posters, lobby displays, press books, trade publications, newspapers, magazines
and other periodicals, commercial and other tie-ups, and all other media of advertising and publicity whatsoever (and to copyright said synopses in Producer's name in all countries of the
world), provided, no synopses shall be serialized or represented as having been written by Owner without Owner's prior written consent. 

        (b)   The
right of Owner personally to write and create sequel literary material using the characters of the Work and to exploit such "author-written sequels" in the form of
written publications as books, novels, novellas and the like. Producer shall have the right to create and commission "studio sequels" in the form of screenplays, teleplays, treatments and the like
which may serve as the basis of either feature motion pictures, television programs, or other productions. 

        (c)   Owner's
reserved rights relate only to protectable rights in the Work and not to any screenplay, teleplay, music, lyrics, sequels or other material written, created, or
commissioned by Producer, or public domain material, even though the same contains characters and other elements of the Work. Owner waives and relinquishes any so-called "moral rights of
authors" (including droit moral and droit d'auteur) existing under the Berne Convention and otherwise
and such waiver and relinquishment specifically authorizes Producer to make such changes, deletions and modifications in Producer's development of any Picture hereunder as Producer shall determine in
its sole and exclusive discretion. 

4.    REPRESENTATIONS AND WARRANTIES: Owner hereby represents and warrants that: 

        (a)   Owner
is the sole author of the Work and Owner is the sole and exclusive owner and proprietor throughout the universe of the Work and any and all rights in and to the
Work (other than any material that may be in the public domain); 

        (b)   Owner
has the full right, power and authority to enter into this Agreement and grant Producer all rights herein provided for; 

        (c)   No
motion picture, television, radio, dramatic or other version or adaptation of the Work has heretofore been authorized or made, produced, performed copyrighted or
registered for copyright in any country of the world, and the Work is not in the public domain in any country in the world which provides for a copyright or similar protection; 

        (d)   The
Work is wholly original with Owner and no incident therein or part thereof is taken from, based upon, or adapted from any other literary material, dramatic work or
motion picture (other than material in the public domain), and the full use of the Work, or any part thereof, as herein granted will not in any way violate or infringe upon any copyright belonging to
any corporation, person or other business entity ("Person") or knowingly constitute a libel or defamation of, or an invasion of the rights of privacy of or otherwise violate or infringe upon any other
right or rights whatsoever of any Person; 

        (e)   To
the best of Owner's knowledge, there is no outstanding claim or litigation pending against the title or ownership of the Work or any part thereof or in the rights
therein; and 

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        (f)    Owner
has not assigned or licensed to any other Person or in any manner encumbered or hypothecated any of the rights herein granted to Producer with respect to the Work
nor has Owner agreed to do so. 

5.    INDEMNIFICATION: Owner agrees to indemnify and hold harmless Producer and its licensees, employees, agents,
attorneys and their respective licensees, successors and assigns (collectively, "assigns") from and against any and all claims, demands, damages, liability, losses, judgments, costs and expenses
(including reasonable attorneys' fees) sustained or incurred by Producer or its assigns arising out of, resulting from, based upon or incurred because of any breach of any warranty, undertaking,
representation or agreements made or entered into hereunder by Owner. Producer agrees similarly to indemnify Owner with respect to material added to the Work by Producer or at Producer's request, or
resulting from the development, production, distribution, exhibition, broadcast, advertising, publicity, promotion, or exploitation of the Picture. 

6.    CREDIT: Producer shall accord Owner credit in the main titles, if any, subject to customary exclusions and
exceptions, on positive prints of the Picture, to the minimum extent required by the Writers Guild of America Basic Agreement, it being presently contemplated that such credit shall read: "Written by
Brett Hudson, Burt Kearns, Albert S. Ruddy." Subject to the foregoing, Producer shall determine, in its
sole discretion, the manner, form, size, style, nature and placement of any credits and no casual or inadvertent failure of Producer to comply with the provisions hereof with respect to credit shall
constitute a breach of this Agreement by Producer. Producer shall use commercially reasonable efforts to cure prospectively any such failure in paid advertising promptly following notice from Owner if
such failures are reasonably capable of being so cured. 

7.    FURTHER DOCUMENTS: At Producer's request, Owner will execute and deliver such further documents and perform such
further acts as may be or become reasonably necessary to effectuate the purposes of this Agreement. Without limiting the foregoing, concurrently with the execution of this Agreement, Owner shall
execute and deliver to Producer a short form assignment in the form of Exhibit "A" (which may be recorded in the U.S. Copyright Office). Such exhibit attached to this Agreement is hereby incorporated
by this reference as if fully set forth herein. 

8.    ATTORNEY-IN-FACT: Without limiting Owner's obligations hereunder, Owner hereby appoints
Producer the true and lawful attorney-in-fact of Owner to execute and deliver any documents and perform any acts if Owner fails or refuses to do so in accordance with this
Agreement promptly after Producer's written request therefor (which appointment is coupled with an interest and irrevocable). 

9.    LIMITATION OF REMEDIES: Owner acknowledges that in the event of a breach of any of Producer's obligations under
this Agreement, the damage (if any) caused to Owner thereby is not irreparable or otherwise sufficient to give rise to a right of injunctive or other equitable relief; and Owner's rights and remedies
in the event of a breach of this Agreement by Producer shall be limited to the right, if any, to recover damages in an action at law and Owner shall not be entitled to restrict or interfere with
Producer's right to produce, distribute or exploit all motion pictures or other productions produced pursuant to this Agreement and the ancillary rights therein or otherwise exploit or exercise any of
the rights granted to Producer hereunder. 

10.    ASSIGNMENT: Producer shall have the right to assign any or all of its rights under this Agreement to any
Person, but no such assignment shall relieve Producer of its obligations to Owner under this Agreement unless the assignee is a major motion picture studio, mini-major motion picture
studio or network or other financially responsible party which assumes such obligations to Owner hereunder in writing. 

11.    NOTICES: All checks, statements and notices from Producer to Owner shall be sent to Owner at the address set
forth on the first page hereof, with copies if and as indicated. All notices from Owner 

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to
Producer shall be sent to Producer at the address set forth on the first page hereof, with copies if and as indicated. 

12.    PUBLIC RIGHTS: Nothing contained in this Agreement shall be construed to be or operate in derogation or
limitation of any rights to which Producer may be entitled as a member of the public even if this Agreement were not in existence. 

13.    COMPLETE UNDERSTANDING: This Agreement sets forth the complete understanding between Owner and Producer with
respect to the subject matter hereof, and all prior agreements have been merged herein, whether written or oral, and may not be modified except by a written instrument signed by the party to be
charged. Owner acknowledges that neither Producer nor any of its agents, employees or representatives has made any representation or promise not expressly contained in this Agreement. The laws of the
State of California applicable to contracts negotiated, executed and wholly performed within said State shall apply to this Agreement. 

        IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written. 

	 	 	OUT OF THE BLUE PRODUCTIONS, LLC
	

 	
 	

By:	

/s/  AL RUDDY    

            Al Ruddy, Manager
	

 	
 	

By:	

/s/  GRAY FREDERICKSON   

            Gray Frederickson, Manager
	

AGREED TO AND ACCEPTED BY:	
 	

 	

 
	

/s/ BRETT HUDSON
 BRETT HUDSON	
 	

 	

 
	

/s/ BURT KEARNS
 BURT KEARNS	
 	

 	

 
	

/s/ ALBERT S. RUDDY
 ALBERT S. RUDDY	
 	

 	

 

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EXHIBIT "A"
  
    SHORT FORM ASSIGNMENT

        For
good and valuable consideration, receipt of which is hereby acknowledged, the undersigned BRETT HUDSON, BURT
KEARNS, and ALBERT S. RUDDY (hereinafter collectively referred to as "Owner") hereby sell, grant, assign and set over unto  OUT OF THE BLUE PRODUCTIONS,
LLC. (hereinafter sometimes referred to as "Purchaser"), and his representatives, heirs, successors and assigns in
perpetuity and throughout the universe now existing or hereafter created, the sole and exclusive motion picture rights, television motion picture, and certain other television and radio rights and
certain allied and incidental rights including limited publication radio and television rights for advertising and exploitation purposes, in and to the literary, dramatic and/or musical writings and
materials (hereinafter referred to as "Work") described as "OUT OF THE BLUE" written by Owner, including all plots, themes, title or titles, dialogue,
language, incidents, action, story, characters and copyrights thereof and all renewals and extensions of such copyright, and any translations, novelizations, dramatizations, sequels, remakes and other
adaptations or versions thereof, now made or hereafter created, made or permitted to be made by Owner. This assignment is of all rights acquired pursuant to a certain Literary Purchase
Agreement—Screenplay dated as of December 12, 2003 between the parties hereto and is subject to all of the terms and conditions of said Agreement. 

        Owner
shall obtain or cause to be obtained renewals of all United States copyrights in and to the Work, whether or not referred to herein and shall assign said rights under said renewal
copyrights to Purchaser without further consideration. Purchaser is also hereby empowered to bring, prosecute, defend and appear in suits, actions and proceeding of any nature under or concerning all
copyrights in and to the Work and all renewals thereof, or concerning any infringement of any such copyright or renewal copyright, or interference with any of the rights hereby granted to Purchaser
under said copyrights or renewals thereof, in its own name or in the name of the copyright proprietor, but at the
expense of Purchaser, and at its option, Purchaser may join such copyright proprietor and/or Owner as a party in such suit, action or proceeding; any recovery therefrom is hereby assigned to
Purchaser. 

        Owner
hereby assigns to Purchaser all documents heretofore or hereafter executed in favor of Owner by any third party insofar as such documents affect or pertain to any of the rights
herein granted to Purchaser. 

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        IN
WITNESS WHEREOF, the undersigned has executed this assignment as of            ,
                        . 

OWNER: 

/s/
BRETT HUDSON
 BRETT HUDSON

/s/
BURT KEARNS
 BURT KEARNS

/s/
ALBERT S. RUDDY
 ALBERT S. RUDDY

	STATE OF CALIFORNIA    )	 	 
	                                        
                  )ss.	 	 
	COUNTY OF LOS ANGELES)	 	 

        On                        ,
2003, before the undersigned,                        a Notary Public in and for said County and State, personally appeared
BRETT HUDSON, BURT
KEARNS and ALBERT S. RUDDY, known to me or proved to me on the basis of satisfactory evidence to be the persons who executed the
within instrument and acknowledged to me that each of them executed the same. 

        WITNESS
my hand and official seal. 

	 	 	
 Notary Public in and for said

County and State

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EXHIBIT 10.13

LITERARY PURCHASE AGREEMENT -SCREENPLAY- Dated: As of December 22, 2003

EXHIBIT "A" SHORT FORM ASSIGNMENTQuickLinks
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EXHIBIT 10.14    
    

 
 

AMENDMENT TO
  INVESTOR AGREEMENT BETWEEN GRAYMARK PRODUCTIONS, INC.,
  A & A PRODUCTIONS, LLC and FROZEN TELEVISION, INC.    
    

        This agreement shall amend the Investor Agreement ("Investor Agreement") made November 20, 2003, by and between Graymark Productions, Inc.
("Investor"), and A & A Productions, LLC ("A & A") and Frozen Television, Inc. ("Frozen") (A & A and Frozen are collectively referred to as "Producer") regarding an
investment of Two Million Dollars ($2,000,000) in consideration of acquiring the right to share in the equity of the motion picture (tentatively) entitled "OUT OF THE BLUE" (the "Picture") to be
produced by Producer. 

        Paragraph 4
of Investor Agreement shall be deleted in its entirety and the following shall be inserted in its place: 

"4.    INVESTOR'S MONETARY CONTRIBUTION: Investor shall commence cash-flow of the Picture as described below, but only after each
and all of the following enumerated conditions precedent have first occurred: 

	(a)
	Investor's
approval of the chain of title to Picture and all underlying rights and materials.

	(b)
	The
full execution of this Agreement. 

        Provided
the conditions precedent have been satisfied, Investor shall cash-flow the Picture according to the following schedule. All deposits shall be made in the production
account established by Producer for purposes of financing the Picture. 

	(i)
	Fifty
Thousand Dollars ($50,000) upon full execution hereof ("Initial Deposit"). Sums to cover script rights acquisition; partial legal fees; setup of production
offices; casting; location scouting; Producer may not commence expenditure of the Initial Deposit until Investor approves the lead performer for the Picture (and such performer indicates his
availability and willingness to perform the role).

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

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

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

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

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

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

        Investor
agrees that once the mutually approved lead performer and director have been set, Investor shall provide proof of the entire amount of the financing in the form of an
irrevocable letter of credit, wire transfer or deposit of the full sum into a dedicated escrow account for withdrawal in 

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accordance
with the cash-flow schedule above. If necessary, Investor shall place the appropriate funds in escrow, in order to secure the actor and director deals. 

        Each
cash-flow payment into the production account shall require the signature of Gray Frederickson or such other designee of Investor if Frederickson is unavailable or
incapacitated." 

        This amendment to the Investor Agreement is agreed to and accepted this 5th day of January, 2004:

	GRAYMARK PRODUCTIONS INC.
	

By: /s/ GRAY FREDERICKSON
	

Its:	

	

A & A PRODUCTIONS, LLC
	By: /s/ ALBERT S. RUDDY
	

Its:	

	

FROZEN TELEVISION, INC.
	

By: /s/ BRETT HUDSON
	

Its:	

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QuickLinks

EXHIBIT 10.14

AMENDMENT TO INVESTOR AGREEMENT BETWEEN GRAYMARK PRODUCTIONS, INC., A & A PRODUCTIONS, LLC and FROZEN TELEVISION, INC.

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