Document:

June
      15,
      2006

     

    This
      letter, when signed below shall constitute the agreement (the "Agreement")
      between The Tribal Vision Group, LLC d/b/a Yoga Tribe and Culture Productions,
      a
      California Limited Liability Company with offices at 727 Ozone Street, Santa
      Monica, CA 90405 ("YTC"), and UKARMA, a Nevada corporation with offices at
      770
      Broadway, 2nd Floor, New York, NY 10003 (UKARMA") (together the “Parties”)
      regarding the production of four yoga and/or exercise videos anticipated to
      be
      primarily distributed via direct-response.

     

    In
      consideration of the mutual promises and covenants contained herein and for
      other valuable consideration the receipt and sufficiency of which is hereby
      acknowledged, YTC and UKARMA hereby agree as follows:

     

    1.
      Scope
      of Work:
      YTC
      shall produce, edit and deliver to UKARMA the finished, edited and first-class
      quality filmed content featuring yoga and/or exercise routines (the “Content”)
      for adults (as may be designated by UKARMA). The Content shall be produced
      as
      specified in subparagraph (f) below, featuring and led by Eric Paskel and such
      other persons as may be designated by UKARMA. The Content shall be divided
      into
      programs also as specified in subparagraph (f) below (individually referred
      to
      as a “Program” and collectively, the “Programs”). Each Program shall be
      delivered: (i) fully-synchronized with dialogue, music, lyrics, sound and
      effects as requested by UKARMA, produced pursuant to the budget; (ii) of high
      technical quality, with the negative, soundtrack and other material of each
      Program delivered to UKARMA with sufficient quality and condition so that the
      Program shall be suitable for mass-production of high-quality DVDs and
      videotapes and widespread direct-response home video distribution by customary
      means throughout North America; (iii) originally recorded primarily in the
      English language; and (iv) filmed in color using a professional industry high
      definition format and the highest quality high definition camera for such
      filming. 

     

    (a)
      Shoot(s):
      The
      Programs will be filmed by YTC on location in Los Angeles at a location
      determined by UKARMA. The Programs shall include yoga/fitness classes led by
      Eric Paskel. It is anticipated that the filming will require a minimum of four
      (4) days of filming on location in Los Angeles utilizing the number of cameras
      for such shoot specified in Section 1(f) below, in numerous yoga classes or
      sessions, as well of other shots of or interviews with Eric Paskel or other
      persons in the classes. YTC shall provide UKARMA a written treatment detailing
      the vision for the Programs at least two (2) weeks prior to commencement of
      filming. UKARMA shall have final approval over all creative elements of the
      Programs subject to the approvals outlined in Section 4 (and UKARMA shall
      determine all screen credits relating to the Programs, provided that the crew
      & director shall receive customary credits, and YTC shall also receive a
      customary screen credit). The filming shall commence no later than July 24,
      2006, and shall be completed no later than 7 days later.

     

    (b)
      Post-production:
      Following the completion of the shoot(s) listed in 1(a) above, subject to
      ongoing consulting and coordinating with UKARMA, and UKARMA’s consent, YTC will
      edit, coordinate and oversee post-production of the Programs in Los Angeles
      as
      set forth in Section 4 below.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    (c)
      Program
      Elements:
      YTC
      will furnish and/or arrange for all necessary Program elements (e.g., opens,
      animations, mix and color corrections (“Program Elements”)), releases, rights
      and permissions and for all personnel (which releases shall be in favor of
      UKARMA), services and facilities required for acquisition or production and
      recording of the Programs. In connection with the Programs, YTC shall (1)
      maintain a complete file of all funding agreements, production subcontracts,
      property acquisitions, rights arrangements, employment agreements, clearance
      forms and other agreements or documents involved in the Programs production
      or
      acquisition (the “Production Documents”) for a period of two (2) years following
      the Programs delivery to UKARMA and (2) deliver a full and complete copy of
      all
      Production Documents to UKARMA concurrent with delivery of the
      Programs.

     

    (d)
      Promotional
      Elements:
      YTC
      agrees that UKARMA may use and authorize any others to use informational and
      promotional materials or other data concerning the Programs as may be available
      in promotion of the Program. YTC will ensure that these materials will be
      cleared for use in the promotion and marketing of the Programs in brochures,
      ads, videocassette and disc covers, catalogs or other such uses. 

     

    (e)
      Contacts:
      YTC
      points of contact for these Programs under the Agreement will be Bill
      Glaser.

     

    (f)
      Content
      of Programs (and cameras used in filming):
      YTC
      agrees that the Programs shall include the following elements: (1) a 60-minute
      “yoga rocks” class with 50 people and a live band, which will be shot using 4
      cameras and a crane with a telescope; (2) a 45-minute “yoga rocks” class with 15
      people and a live band, which will be shot using 4 cameras and a crane without
      a
      telescope; (3) a 45-minute “wall” class with an on-camera introduction, which
      will be shot using 3 cameras; (4) a 30-minute “master flow” class with an
      on-camera introduction, which will be shot using 3 cameras; (5) a 20-minute
      class with an on camera introduction, which will be shot using 3 cameras; and
      (6) a 15-minute “abs” class with an on-camera introduction, which will be shot
      using 3 cameras. There will be 6 on-camera introductions. YTC agrees that
      additional content will be shot with time permitting. 

     

    2.
      Key
      Person:
      YTC
      acknowledges that the services provided by James Wvinner as Producer/Director
      of
      the Programs is of the essence of YTC’s obligations with respect to this
      Agreement and a material inducement to UKARMA entering this Agreement. Any
      change by YTC of a person to perform services other than Wvinner shall be
      subject the approval of UKARMA which may be granted or withheld in UKARMA’s sole
      and absolute discretion. If Wvinner services are not available and UKARMA does
      not in its sole and absolute discretion approve the replacement selected by
      YTC,
      then UKARMA shall have the right to immediately terminate this Agreement with
      no
      further payments due to YTC (and YTC shall refund within five (5) business
      days
      following any such termination all payments received by UKARMA since entering
      into this Agreement). 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    3.
      Production
      budget:
      In
      accordance with the production budget attached as Exhibit
      A,
      UKARMA
      shall pay to YTC a total of TWO HUNDRED SIXTY-FOUR THOUSAND TWO HUNDRED
      FORTY-FOUR DOLLARS ($264,244.00) to be used for the creation of the Programs
      (subject to change as described below in this paragraph, the “Budget”). The
      Budget may increase only with the prior written consent of UKARMA. The Budget
      will decrease if: (1) the actual cost of the Los Angeles location utilized
      for
      filming (the “Location Cost”) is less than the budgeted location cost; (2) the
      actual talent cost (i.e., cost of the cast for filming the Programs, the “Talent
      Cost”) is less than the budgeted talent cost; or (3) the location utilized for
      the filming does not require installation of wood floors (i.e., the budget
      contains a $2,000 expense item for installation of wood floors in the location).
      A cost increase (i.e., in excess of the amount for such item provided for in
      the
      Budget) shall only be considered to be part of the Budget and paid for by
      UKARMA, if such increase is approved in writing by UKARMA. YTC shall submit
      all
      of its expense receipts for expenses contemplated in the Budget relating to
      the
      production of the Programs to UKARMA within two (2) business days of such
      expense having been incurred. In the event that the Location Cost and/or the
      Talent Cost is lower than the budgeted amount for such expense set forth in
      the
      Budget, or the location does not require installation of wood floors for the
      filming (each, a “Savings”),
      UKARMA shall be entitled to such Savings. 

     

    All
      payments to YTC hereunder shall be paid by wire transfer in five (5)
      installments. The first installment of thirty percent (30%) of the Budget shall
      be paid upon execution of this Agreement. The second installment of thirty
      percent (30%) of the Budget shall be on commencement of production (which shall
      be deemed to be 1 week before prior to actual commencement of shooting) by
      YTC.
      The third installment of fifteen percent (15%) of the Budget shall be paid
      on
      delivery to UKARMA of the rough cut of the Programs. The fourth installment
      of
      fifteen percent (15%) of the Budget shall be paid upon UKARMA’s “sign-off” on
      all changes to the rough cut of the Programs. The fifth and final installment
      of
      ten percent (10%) of the Budget shall be paid upon UKARMA’s approval of all
      final edits and changes to the Programs. YTC agrees that within ten (10) days
      following UKARMA’s fifth such payment, YTC shall deliver to UKARMA high quality
      Masters of all the Programs along with a full and complete set of all of the
      Production Documents. In the event that the Budget decreases due to a Savings,
      all payments to YTC after the date of such decrease shall be appropriately
      adjusted and reduced to reflect the decrease and take into account the excess
      payment included in the previous payment(s) to YTC prior to such decrease.
      Alternatively, in the event of any Budget increases approved in writing by
      UKARMA, all payments to YTC after the date of such increase shall be
      appropriately adjusted and increased to reflect the increase and take into
      account the shortfall amount in the previous payment(s) to YTC prior to such
      increase. 

     

    Any
      potential changes to the Budget must be submitted in writing by YTC to UKARMA
      in
      advance of the additional expenditure. UKARMA shall then either accept in
      writing or deny the proposed change in writing within three (3) business days.
      If UKARMA does not give its written approval for any such additional
      expenditure, YTC shall not incur such additional expenditure and shall complete
      the Programs as contemplated herein and in the Budget. Any unapproved overages
      or expenses incurred in the production of the Programs shall be borne solely
      by
      YTC.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    4.
      Editorial
      Control, Delivery and Acceptance:
      YTC
      will work with Eric Paskel in delivering to UKARMA on or before June 20, 2006,
      a
      final detailed descriptive content treatment for each Program in order to ensure
      that the Programs meet UKARMA’s understanding and vision. Eric Paskel is
      responsible for delivering his outline and overview of the classes’ formats, the
      introductions, interviews and commentary, two (2) weeks before the commencement
      of location filming. (Eric will be paid by UKARMA for his performing, materials
      and series.) The YTC treatment may include but not be limited to specific
      details on talent and cast, set design, wardrobe, suggested credits, and in-kind
      donors. YTC will consult with and obtain UKARMA’s prior written approval
      regarding the editorial content or any changes to the Programs. The Programs’
production and artistic control will be under YTC’s direct supervision, in
      collaboration with UKARMA. 

     

    A
      DVD
      rough-cut of the Programs will be delivered to UKARMA within approximately
      six
      (6) weeks (and in no event later than eight (8) weeks) after completion of
      the
      yoga/fitness class filming in Los Angeles). UKARMA shall then have fourteen
      (14)
      days to respond with feedback to YTC (“Feedback”). YTC shall then edit the
      rough-cut of the Programs and incorporate the Feedback into its creation of
      the
      final assembly of the Programs, and deliver a revised, re-edited cut of the
      Programs to UKARMA for its consideration and approval within two (2) weeks
      of
      receipt of the UKARMA feedback. If UKARMA has additional feedback, it shall
      communicate it to YTC within seven (7) days following receipt of such re-edited
      cut (“Additional Feedback”); and, YTC shall then further edit the cut of the
      Programs and incorporate the Additional Feedback into its creation of the final
      assembly of the Programs, and deliver a further revised, re-edited cut of the
      Programs to UKARMA for its consideration and approval within two (2) weeks
      of
      receipt of the UKARMA additional feedback. The final cut of the Programs is
      to
      be delivered no later than seven (7) days after UKARMA indicates that it has
      no
      more suggested changes to the Programs. All of such prospective editing is
      included in the Budget and there will be no charge by YTC therefor other than
      the payments described in Section 3 above.

     

    YTC
      shall
      deliver to UKARMA three DigiBeta masters of each finished DVD and three DVD
      dubs
      with burned in time-code of the final cut of the Programs. The above schedule
      can only be modified by mutual written agreement of YTC and UKARMA (and time
      is
      of the essence with respect to the schedule and dates provided for herein).
      

     

    5.
      Work
      Made-for-Hire:
      YTC
      acknowledges that the result and proceeds from the services it performs under
      this Agreement shall constitute work made-for-hire. Accordingly, UKARMA shall
      own all right, title, and interest, including, but not limited to, all
      copyrights, trademarks, patent rights, trade secrets, and any other intellectual
      property rights, in the Programs (including, without limitation, all extensions,
      renewals, or continuations of any and all such rights), and that UKARMA shall
      have the exclusive right to use the Programs in all media in perpetuity
      throughout the universe. UKARMA shall be the sole owner of the Programs as
      a
      work made-for-hire and any and all of YTC’s contribution to Programs shall be
      deemed to be a contribution to a collective work under United States Copyright
      Act of 1976, as amended (17 U.S.C. § 101 et seq.). In case that the Programs (or
      any part of them) is found not to satisfy the criteria of works made-for-hire,
      YTC agrees upon request by UKARMA that YTC will immediately execute any
      necessary documentation and will hereby transfer and assign to UKARMA all right,
      title, and interest, including, but not limited to, all copyrights, trademarks,
      patent rights, trade secrets, and any other intellectual property rights, in
      the
      Programs (including, without limitation, all extensions, renewals, or
      continuations of any and all such rights) now or hereafter known or acquired.
      UKARMA shall have the right to obtain and hold in its name all copyright
      registrations and other evidence of rights that may be available for the
      Programs (or any part).

     

    6.
      No
      Obligation to Use:
      Nothing
      contained herein shall in any way obligate UKARMA actually to use YTC’s services
      or any of the results or proceeds of YTC’s services, or to produce, exhibit,
      distribute, advertise or otherwise exploit any material written or produced
      by
      YTC hereunder.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    7.
      Confidentiality:
      Except
      as may be required in connection with filings with courts or government agencies
      or required under applicable law, YTC and UKARMA agree to keep strictly
      confidential the terms and provisions of this Agreement and shall not disclose
      such terms and provisions to any person or entity other than to their respective
      lawyers and/or accountants on a must-know basis. YTC and YTC's representatives
      shall not, without UKARMA's prior written consent, issue or authorize any
      publicity or grant any interview or make any statements relating to this
      Agreement.

     

    8.
      Representations
      and Warranties:
      YTC
      hereby represents and warrants that: 

     

    (a)
      all
      material written, produced or contributed by YTC pursuant to this Agreement
      shall either be created by and wholly original by YTC, or fully cleared by
      YTC
      for use by UKARMA (and its successors in title, assigns and licensees) to the
      fullest extent contemplated by this Agreement in the exercise of UKARMA's rights
      pursuant to this Agreement, and neither the existence nor exploitation of such
      material does or will in any way infringe upon or violate any copyright, or
      rights of privacy or publicity, common law rights, or any other rights, or
      constitute a libel or slander against, any person, firm, corporation or other
      entity whomsoever, and that duplication, distribution, and sale of the Programs,
      will not require any payment or compensation to any third party or YTC;

     

    (b)
      YTC
      is fully ready, willing and able to perform services hereunder, and YTC has
      the
      full right, power and legal capacity to make and perform this Agreement and
      furnish YTC's services hereunder without the consent of any third party;

     

    (c)
      there
      is no litigation pending or threatened which would in any manner interfere
      with
      the full and complete enjoyment by UKARMA of the rights and privileges herein
      granted; 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    (d)
      it
      will comply with all applicable laws, rule and regulations in its production
      of
      the Programs; and 

     

    (e)
      it
      will obtain a general liability insurance policy to cover the production of
      the
      Programs in an amount not less than $1 million per occurrence and $2 million
      in
      the aggregate, which insurance coverage shall (1) be in effect within ten (10)
      days after the date hereof and prior to commencement of location filming of
      the
      Programs, (2) name UKARMA (and its officers, directors and shareholders) as
      an
      additional insured and (3) provide that such coverage cannot be canceled or
      modified without 30 days prior written notice to each additional insured (and
      YTC agrees that it shall provide evidence of such insurance reasonably
      satisfactory to UKARMA prior to commencement of production of the Programs).
      Such insurance shall not, however, cover any third party claims against UKARMA
      or YTC which assert or allege that the yoga poses taught or exhibited by Eric
      Paskel in the Programs violates the copyright or other intellectual property
      rights of such third party. 

     

    All
      such
      representations and warranties shall survive execution and delivery of this
      Agreement the consummation of the transactions contemplated herein. UKARMA
      has
      executed this Agreement in reliance upon the foregoing representations and
      warranties. 

     

    9.
      Indemnification:
      YTC and
      UKARMA each agree to defend, indemnify and hold harmless the other from all
      claims, actions, costs, damages, losses, liabilities, and expenses (including,
      without limitation, reasonable attorneys’ fees), as incurred, directly arising
      or resulting from the acts or omissions of the indemnifying party or the breach
      by the indemnifying party of any of the warranties, representations, terms,
      or
      conditions of this Agreement. Neither party shall be liable to the other for
      any
      consequential or other indirect damages.

     

    10.
      Relationship
      of the Parties:
      Nothing
      in this agreement shall be construed to create (and neither party nor any
      affiliate or agent thereof shall represent to the contrary) a partnership,
      joint
      venture, or any relationship other than that of independent contractors. It
      is
      agreed that YTC’s relationship to UKARMA is that of an independent contractor
      and that YTC is not an employee or agent of UKARMA for any purpose, including
      but not limited to federal, state or local unemployment insurance laws, old
      age
      benefits, Social Security laws, worker’s compensation laws, tax laws or any
      other industrial law and are not eligible for any of the benefits to which
      employees of UKARMA are eligible. Accordingly, YTC is responsible for payment
      of
      all taxes for YTC’s services hereunder, including but not limited to, social
      security taxes, and federal, state and city income tax. YTC warrants that YTC
      will make all necessary payments due to appropriate governmental agencies to
      comply with the foregoing and indemnify UKARMA against any claims, liabilities,
      costs or expenses that may arise out of the foregoing warranty. YTC shall be
      responsible for providing YTC’s own office and work premises (including without
      limitation office equipment and any secretarial support) unless space is made
      available by UKARMA, in its sole discretion, and, accordingly, YTC shall be
      responsible for all costs, expenses and supplies associated with maintaining
      YTCs own office, work premises, equipment and secretarial support. YTC has
      no
      authority, expressed or implied, to assume or create any obligation on behalf
      of
      UKARMA.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    11.
      Assignment:
      Neither
      YTC or Wvinner may assign or license its rights and obligations under this
      Agreement without the prior written consent of UKARMA, with such consent shall
      be granted or withheld in UKARMA’s sole discretion; and any attempted assignment
      in violation of this Agreement shall be void and of no force or effect. YTC
      agrees that UKARMA may assign this Agreement at any time to any person or
      entity. Subject to the foregoing, this Agreement shall be binding upon and
      inure
      to the benefit of the parties hereto and their respective heirs, personal
      representatives, administrators, executors, successors and permitted assigns,
      and any past, present, or future parent, subsidiary or affiliated company.
      

     

    12.
      Effect
      and Amendment:
      This
      Agreement cannot be assigned, altered, amended, changed or modified in any
      respect or particular unless each such assignment, alteration, amendment, change
      or modification shall have been agreed to in writing, signed and delivered
      by
      each such party hereto. This Agreement shall be deemed to become effective
      upon
      signature by UKARMA and YTC hereto.

     

    13.
      Miscellaneous:
      This
      Agreement, including any and all exhibits or attachments referred herein, sets
      forth the entire agreement of the parties relating to the subject matter hereof
      and supersedes all prior agreements, previous documents, correspondence,
      conversations and understandings, written or oral, between YTC and UKARMA.
      This
      Agreement may not be altered, waived, or modified except by a writing signed
      by
      all parties or their respective heirs, successors, assigns, or legal
      representatives. No waiver by either party of any of the terms and conditions
      of
      this Agreement in any one instance shall be deemed to be a waiver of any
      preceding or succeeding breach of the same. All remedies, rights, undertakings,
      obligations and agreements contained in this Agreement shall be cumulative
      and
      none of them shall be in limitation of any other remedy, right, undertaking,
      obligation or agreement of either party. This agreement shall be governed by
      and
      construed in accordance with the laws of the State of California without
      reference to its rules relating to conflict of laws. The parties hereto hereby
      irrevocably agree (i) that the courts of California and any federal court
      located therein shall have exclusive jurisdiction in connection with any suit,
      action or other proceeding arising out of or relating to this agreement, or
      the
      transactions contemplated herein, and (ii) to waive any objection to venue
      in
      California in connection therewith. In any action between the parties relating
      to this Agreement, the enforcement of any of its terms or to any other contract
      relating to the subject matter of this Agreement, the prevailing party shall,
      in
      addition to any award of damage or other remedy, be entitled to reasonable
      outside attorneys’ fees, costs and expenses directly incurred thereby. Paragraph
      headings and other captions contained in this Agreement are for reference
      purposes only, and are in no way intended to describe, interpret, define or
      limit the scope, extent or intent of any of the provisions herein.

     

    14.
      Music:
      This
      agreement does not include music or music rights for the Programs. Music will
      be
      supplied by UKARMA for editing and the completion of these
      Programs.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    15.
      Joint
      Drafting of Agreement:
      This
      agreement shall be deemed to have been jointly drafted by the Parties and
      therefore shall not be interpreted against either Party.

     

    

    IN
      WITNESS WHEREOF, the parties have entered into this letter agreement as of
      the
      date first written above.

    

    
 

    
      	THE TRIBAL VISION GROUP,
              LLC
              
              d/b/a
                YOGA TRIBE AND CULTURE   

              PRODUCTIONS

            	 	UKARMA
              CORPORATION
	 	 	 	 	 
	 	 	 	 	 
	By:	  	 	By:	  
	 	
              James
                Wvinner, Manager

            	 	 	
              Bill
                Glaser,
                CEO

            

    

    

    
      

    
      
         

      

      
        8UKARMA
      CORPORATE/XFLOWSION PRODUCT BRAND(S) DEVELOPMENT PROPOSAL

    Synthesis
      proposes to develop uKarma’s identity and internet brand applications, while
      simultaneously designing and developing the XFlowsion product branded for DRTV
      channel marketing, including: 

     

    
      
        	
                Phase
                  One: “Brand Creation” (October)

              	 	
                Program

              	 
	
                uKarma
                  Identity Development:

              	 	
                $

              	
                10,000

              	 
	
                -
                  Visual/Static Brand Identity Design

              	 	 	 	 
	
                -
                  Traditional Business Form Applications 

              	 	 	 	 
	
                -
                  Letterhead and Business Cards

              	 	 	 	 
	
                -
                  Visual/Kinetic Brand Identity Design

              	 	 	 	 
	
                -
                  Web Intro Apps

              	 	 	 	 
	
                -
                  Show Identity Signature

              	 	 	 	 
	
                XFlowsion
                  Brand Identity Development:

              	 	
                $

              	
                12,000

              	 
	
                -
                  Name Generation

              	 	 	 	 
	
                -
                  Visual/Static Brand Identity Design 

              	 	 	 	 
	
                -
                  Visual/Kinetic Brand Identity Design

              	 	 	 	 
	 	 	 	 	 
	
                Phase
                  Two: “Brand Expansion”
(October/November/December)

              	 	 	 	 
	
                XFlowsion
                  Core Packaging Development:

              	 	
                $

              	
                45,000

              	 
	
                -
                  Exterior Master Package Design

              	 	 	 	 
	
                -
                  7
                  DVD Exterior Packaging Designs plus Combo Pack

              	 	 	 	 
	
                -
                  7
                  DVD Label Design

              	 	 	 	 
	
                -
                  DVD Authoring Designs

              	 	 	 	 
	
                XFlowsion
                  IP Collateral:

              	 	
                $

              	
                12,500

              	 
	
                -
                  Diet Guide

              	 	 	

              	 
	
                -
                  Exercise Guide

              	 	 	

              	 
	
                -
                  Audio CD Packaging

              	 	 	

              	 
	
                -
                  Host Welcome Letter

              	 	 	

              	 
	 	 	 	 	 
	
                Phase
                  Three: “Web Development” (December/January )

              	 	 	 	 
	
                uKarma
                  Web Page Development

              	 	
                $

              	
                8,500

              	 
	
                XFlowsion
                  Web Product Chapter or Standalone Site

              	 	
                $

              	
                6,000

              	 
	
                -
                  Site Logic Development for both

              	 	 	 	 
	
                -
                  Front-End Design Exploration for both

              	 	 	 	 
	
                -
                  Flash and HTML Programming for both

              	 	 	 	 
	
                -
                  Complete Content Delineation for both

              	 	 	 	 
	
                SubTotal:

              	 	
                $

              	
                94,000

              	 
	 	 	 	 	 
	
                Credit:
                  initiation received

              	 	 	
                <$
                  7,500>

              	 
	
                Stock
                  Investment

              	 	 	
                <$16,450>

              	 
	 	 	 	 	 
	 	 	 	 	 
	
                Total:

              	 	
                $

              	
                70,050

              	 

      

    

    
 

    
      
        	
                Creative
                  Development 

              	
                Included
                  

              	
                Included

              
	
                Creative
                  direction, design exploration, refinement and execution, art direction
                  and
                  pre-production supervision. 

              
	
                Commissioned
                  Art 

              	
                TBD
                  

              	
                TBD

              
	
                Key
                  art photography and/or illustration.

              	 	 
	
                Production
                  Art 

              	
                Included
                  

              	
                Included

              
	
                Design
                  refinement and composition of electronic master art
                  files. 

              	 

      

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    Fee
      Schedule:

     

    
      	$23,350	 	
              Due
                November 1, 2006

            

    

    
       

      
        	$23,350	 	
                Due
                  December 1, 2006

              

      

       

    

    
      	
              $23,350

            	 	
              Due
                December 31, 2006 - provided that Synthesis has delivered to Ukarma
                by
                such date all deliverables due under this Agreement (unless such
                undelivered deliverable are only few in number, are not material
                to
                Ukarma’s needs and any such delay in delivery is due to reasons entirely
                beyond Synthesis’ control). Time is of the essence with respect to all
                such delivery obligations of Synthesis hereunder.
                

            

    

    

    This
      program consists of the complete conceptual development of a brand extension
      for
      XFlowsion product, through to the development of all of the tools listed above.
      Pricing is based upon the whole program option. The initial $15,000 fee for
      the
      identity has been reduced to $10,000 based upon the whole program option.
      Pricing does not include the incidentals described in our standard terms of
      agreement which are attached. The final approved master art will be the sole
      ownership of Ukarma for unlimited and outright usage.

    

    Synthesis
      agrees that all original works of authorship which are made by Synthesis (solely
      or jointly with others) within the scope of this BRAND DEVELOPMENT PROPOSAL
      and
      which are protectable by copyright are “works made for hire,” as that term is
      defined in the United States Copyright Act (17 U.S.C., Section 101) and any
      similar laws of other jurisdictions, and that all such works shall be the sole
      property of uKarma and any and all copyrights in and to such works shall belong
      to uKarma. To the extent that any of the works of authorship are not deemed
      to
      be “works made for hire” for uKarma, Synthesis hereby assigns and agrees to
      assign to uKarma all proprietary rights, title and interest therein, in
      perpetuity throughout the world in all languages and formats, and in any and
      all
      media, whether now known or hereafter devised, without further compensation.
      Synthesis acknowledges that new rights to such works may come into being and/or
      be recognized in the future, and Synthesis intends to and does hereby grant
      and
      convey to uKarma any and all such new rights in and to such works. Any
      assignment of copyright hereunder includes all rights of paternity, integrity,
      disclosure and withdrawal and any other rights that may be known as or referred
      to as “moral rights” (collectively “Moral Rights”). To the extent such Moral
      Rights cannot be assigned under applicable law and to the extent the following
      is allowed by the laws in the various countries where Moral Rights exist,
      Synthesis hereby waives such Moral Rights and consents to any action of uKarma
      that would violate such Moral Rights in the absence of such consent. Synthesis
      will confirm any such waivers and consents from time to time as requested by
      uKarma. Synthesis agrees to perform, during and after its engagement hereunder,
      all acts deemed necessary or desirable by uKarma to permit and assist it, at
      uKarma’ expense, in evidencing, perfecting, obtaining, maintaining, defending
      and enforcing any and all rights and/or assignment of any and all rights in
      any
      and all countries. Such acts may include, without limitation, execution of
      documents and assistance or cooperation in legal proceedings. Synthesis hereby
      irrevocably designates and appoints uKarma and its duly authorized officers
      and
      agents, as Synthesis’ agents and attorneys-in-fact, with full power of
      substitution, to act for and on behalf and instead of Synthesis, to execute
      and
      file any documents and to do all other lawfully permitted acts to further the
      above purposes with the same legal force and effect as if done by
      Synthesis.

    

    The
      non-prevailing party in any action shall reimburse to the prevailing party
      all
      of the prevailing party’s costs and expenses incurred in connection with such
      dispute (including, without limitation, reasonable attorneys’ fees and expenses
      and expert witness fees and expenses). In the event of any inconsistency between
      the terms of this Proposal and the attached “Terms of Agreement”, this Proposal
      shall control.

    

    

    
      
        

      

    

    Synthesis           
       Date

     

    
      
        

      

    

    uKarma   
                  
Date

    

    

    Synthesis
      Marketing & Communications. Inc.     

    308
1⁄2
S.
      Catalina Avenue

    Redondo
      Beach, CA 90277

    Phone:
      310-376-8093

    Fax
      310-376-8493

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Terms
      of
      Agreement

    

    Resource
      Allocation

    Unless
      otherwise indicated, Client agrees to pay Synthesis 1/2 agreed upon fee upon
      initiation and 1/2 upon delivery of completed digital files. A 1.5% monthly
      service charge is payable on all overdue invoices.

    

    Services

    Services
      are estimated as accurately as possible and are based upon approximated agency
      time investment. Should Client changes result in additional costs, a revised
      estimate will be submitted for Client approval. No further work will be
      undertaken without this approval.

    

    Revision
      Costs

    If
      Client
      requests revisions after the Client has approved copy and design, which
      requested changes result in hard costs made necessary by conditions beyond
      the
      control of Synthesis, Client will be invoiced such hard costs. Such overtime
      and
      revisions will be invoiced as incurred, reconciled fully at the completion
      of
      the project and due within ten days.

    

    Reimbursable
      Costs and Incidentals

    Service
      bureau activities provided by Synthesis will be billed monthly, according to
      the
      attached price sheet. Services requested on a rush basis by Client will be
      invoiced 50% over the attached fee schedule. Out-of-pocket expenses such as
      long-distance phone calls, messengers, overnight deliveries, travel, travel
      expenses, freight, etc. will be invoiced at cost as incurred during the project.
      Payment is due within ten days from the billing date.

    

    Per
      Diem
      Charges

    Should,
      during the course of this project, any Synthesis personnel be required to travel
      for a period exceeding 24 hours, a per diem rate of $200 per person will be
      charged for that person’s absence from the office. All hotels and travel will be
      billed separately.

    

    Ownership

    -
      see
      Proposal - 

    

    Trademarks

    If,
      during the course of a program, Synthesis develops an uncommissioned product
      or
      selling concept (outside the scope of the original contract), Synthesis will
      retain ownership of the copyright until Synthesis and Client agree upon a
      transaction fee for additional services rendered.

    

    Cancellation

    In
      the
      event of cancellation of this contract other than due to breach of contract
      by
      Synthesis, ownership of all copyrights and original Synthesis artwork shall
      be
      retained by Synthesis and a cancellation fee for work completed shall be paid
      by
      the Client. Cancellation fees are as follows (but not payable in the event
      of
      breach by Synthesis): 40% of original fee if canceled prior to completion of
      the
      concept or initial phase, 80% of the original fee if canceled any time after
      the
      concept development phase. All out-of-pocket expenses incurred up to
      cancellation date are due in full. In the case of retainer arrangements, the
      Client shall pay a minimum of 90 days cancellation or 80% of original contract,
      whichever is greater.

    

    Arbitration
      Clause

    Any
      controversy relating to this agreement, or the breach of this agreement, shall
      be settled by arbitration in accordance with the rules of the American
      Arbitration Association. Judgment upon the award tendered may be entered in
      any
      court having jurisdiction. The arbitration will be held in Los Angeles, CA
      before the American Arbitration Association. The prevailing party shall be
      entitled to all costs of arbitration including, but not limited to, reasonable
      attorney’s fees.

    

    

    
      
         

      

      
        3

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