Document:

Exhibit 10.05

 

Stuart Harris,
Executor

The Frank
Worth Estate

135 First
Street

Suite 3E

Keyport, NJ
07735

(732) 264-6845

stu732@gmail.com

 

 

October 10, 2011

 

Memorandum of Understanding

 

To the President and Directors of Capital Art, Inc.

 

As Executor of the Frank Worth Estate I have accepted a settlement
of $50,000 (fifty thousand dollars) on behalf of the Estate to be paid by Capital Art, Inc. for the funds owed to the Estate by
International Images, Ltd..and understand that Capital Art, Inc will make this payment on the schedule agreed in this MOU. Therefore,
as Executor of the Frank Worth Estate I agree to exclusively grant Capital Art, Inc all rights in perpetuity to reproduce prints
from Frank Worth negatives, to use of the Frank Worth name, signature, and intellectual property in exchange for a Royalty Consideration
from Capital Art, Inc. of 7.5% to be paid on all revenue received by Capital Art, Inc. derived from the sale of any and all Frank
Worth prints, products and use whatsoever of Frank Worth’s name, likeness, story and biography. Although these rights previously
granted International Images were terminated for non payment of royalties owed to the Frank Worth Estate, we have permitted Norman
Solomon to have these rights based on his assurance that the agreed settlement would be made on the schedule agreed and by his
making a deposit of $10,000 in May, 2011 which we understand was done on behalf of Capital Art, Inc.

 

Norman Solomon paid the Estate $10,000 as a deposit against the
$50,000 due which triggered the settlement agreement. He has promised a second payment by October 10, 2011 and the Estate has agreed
to schedule the $20,000 balance due over a five month period at $4,000 per month commencing Dec 1, 2011. Although we agree to officially
grant Capital Art, Inc. the rights as stated upon receipt of the $20,000 payment on October 11, 2011 (notification of a wire transfer
will suffice), and a formal agreement will soon be legally generated to that effect, this MOU will serve as the interim agreement.

 

If this payment schedule is not kept, and/or Royalty payments to
the Frank Worth Estate are not made on the 15th of each month, based on the previous months revenue, the Frank Worth
Estate reserves the right to terminate the Royalty Agreement with Capital Art, Inc. given a 30 day notice to Capital to cure any
money due the Estate. Whether or not revenue is generated, Capital Art, Inc agrees to provide the Frank Worth Estate with a monthly
statement detailing all activity regarding the Frank Worth Collection.

    	 

    	 

    

 

In concert with adhering to the Settlement payment schedule and
the Royalty Consideration, this agreement gives Capital Art, Inc, the right to use Frank Worth’s signature with the Estate
seal and other collaterals in any context, including embossing Frank Worth prints, and also grants Capital Art, Inc. all Frank
Worth publishing and merchandising rights.

 

In closing, the Frank Worth Estate
recognizes that Capital Art, Inc. has exclusive ownership and all rights to the asset known as the Frank Worth photographic collection
and can market, use it as collateral, or 'sell' it at Capital Art's discretion with all Estate rights 'included. If Capital Art,
Inc decides to sell the Frank Worth Collection 'all royalty rights ' can be conveyed by CA to a buyer or purchased, at anytime,
for $250,000. 

 

 

Very truly yours,

 

 

/s/ Stuart Harris

Stuart Harris

ExecutorExhibit 10.06

 

ESTATE OF FRANK WORTH

STUART HARRIS

135 FIRST STREET, 3E

KEYPORT, NEW JERSEY 07735

732 -264- 6845

Stu732@gmail.com

 

November 18, 2011

 

Mr. Sean Goodchild                                                      Via email

Chief Executive Officer,

Capital Art, Inc.

6150 Washington Blvd.,

Culver City, Ca. 90232

 

RE: Estate of Frank Worth and Capital Art, Inc.
– Exclusive global Photographic Reproduction and Marketing Rights agreement regarding the Frank Worth Collection

 

Dear Sean,

 

This agreement shall incorporate
our prior understanding as modified inclusive of any and all correspondence, acknowledges my receipt in behalf of the Estate of
Frank Worth (hereinafter referred to as “ESTATE”) of your prior, partial payment(s) from Capital Art, Inc. (hereafter
referred to as “CAPITAL”) aggregating $20,000 (twenty thousand dollars), together with certain monthly payments that
permits CAPITAL, under the terms of this agreement, to obtain exclusive Reproduction Rights to any and all Frank Worth photographs/images
from Frank Worth negatives in CAPITAL’s possession wherever they may to kept or stored. These rights are inclusive of rights
to the Frank Worth name, ESTATE authorized Worth biography, ESTATE authorized Worth likeness, the ESTATE Seal, the ESTATE authorized
Worth signature and the ESTATE Executor authorized signature, to be employed conditionally as described in this agreement, plus
worldwide publication, merchandising and selling rights.

 

RIGHTS

 

1. Effective and commencing
as of November 15, 2011, the ESTATE agrees, and has agreed to sell and CAPITAL agrees, and has agreed to purchase the sole and
exclusive Reproduction Rights to all negatives, prints, products and other materials from the Frank Worth (FW) collection that
CAPITAL possesses, including the use of the FW Seal, Frank Worth’s name, likeness, publications and biography, plus merchandising
and product selling rights all in consideration of, and subject to the purchase price of $50,000, $20,000. of which has heretofore
been paid, and the continuous payment of the agreed upon monthly royalty payment of 7.5% (as hereinafter defined). Although
in force as of the date of this agreement, final acceptance by the ESTATE of all terms memorialized in this agreement shall be
granted in perpetuity with satisfaction of the $30,000 (thirty thousand dollars) outstanding balance amount owed to the ESTATE,
and the continuous payment of the agreed upon monthly royalty payment of 7.5% and annual $50,000 minimum payment (as hereinafter
defined) all relating to the Frank Worth photographs/images in CAPITAL’s possession.

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2. I also grant CAPITAL
exclusive rights to my signature, as Executor of the FW Estate, in conjunction with any and all Certificates of Authenticity printed
by CAPITAL that accompany FW lithographic printed products. For Certificates of Authenticity that accompany limited edition prints
I will personally sign every Certificate. I will sign these certificates in a timely manner in batches of 25, 50, or 100 as requested
by CAPITAL. It is CAPITAL’s option, for each other individual product whether I will either sign each certificate personally,
or sign one that CAPITAL will reproduce for a specific product.

 

 

PAYMENT

 

3. The balance of the acquisition
price in the amount of $30,000 shall be paid to the ESTATE commencing December 1,2011 in the amount of $6,000 (six thousand dollars)
with 4 (four) subsequent, monthly installment payments each in the amount of $6,000. CAPITAL may also decide to pay whatever balance
is owed the ESTATE at any time prior to the scheduled date that the final payment is due and in doing so shall immediately trigger
unconditional acceptance by the ESTATE of all terms and stipulations memorialized in this agreement

 

4. CAPITAL agrees to, and
shall promptly pay to the ESTATE a monthly royalty payment computed at the rate of 7.5% of all FW Net Sales generated and received
by CAPITAL or paid to CAPITAL by its partners, associates or licensors by the use of the enumerated rights and any other consideration
received or derived by CAPITAL or anyone else in its behalf in connection therewith;

 

	a.		Net Sales shall be defined as an amount received by CAPITAL after bona fide and reasonable
reproduction costs, discounts, and commissions/fees, each of which is paid to third parties relating to all transactions involving
all products produced with the Frank Worth Collection, including all limited edition prints and reproductions.

	b.		Royalty payments and statements shall be made and provided by CAPITAL to the ESTATE
on or before the 15th day of each month representing the previous month’s sales and any other consideration received
or derived by CAPITAL in regard to the Frank Worth collection.

	c.		CAPITAL also agrees to pay the ESTATE a minimum guarantee of $50,000 (fifty thousand
dollars) per annum commencing on January 1, 2012, If applicable, the minimum guarantee, or any portion of which that has not been
paid to the ESTATE via monthly royalty payments in any one year, shall be paid to the ESTATE with 15 days following the end of
any year, in connection therewith. All payments shall be made to Stuart Harris in behalf of the ESTATE.

 

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	d.		CAPITAL shall provide the ESTATE with an accurate, quarterly accounting of the previously
derived and related net sales, and net sales as described, starting January 15, 2012 for all applicable transactions prior to
January 1, 2011 dating back to June 1, 2011 and for every three months forward on the 15th of the proceeding month
for all transactions the previous quarter,

	e.		CAPITAL shall use diligent efforts to market products produced from the Frank Worth
negatives;

	f		In the unlikely event that a dispute shall arise with respect to any of the above,
CAPITAL agrees that its books and records shall be made available to a Certified Public Accountant or any other party selected
by the ESTATE or any other party upon reasonable notification to CAPITAL In the event the shortfall exceeds $10,000 CAPITAL shall
pay bone fide and reasonable accounting costs ;

	g.		Exclusive of the payments aggregating $30,000, in the event of any default by CAPITAL
with respect to any payments provided hereunder, CAPITAL shall have a 60 day period to cure said default after Notice of said
default is sent to it by certified, registered or overnight mail. The 60 days shall be computed from the date of the transmittal
of said notice by or in behalf the ESTATE.

	h.		CAPITAL is also be granted the right to buyout this exclusive agreement from the ESTATE
at any time for $250,000 (two hundred fifty thousand dollars) and in doing so CAPITAL will retain all rights and benefits memorialized
in this agreement in perpetuity but be relieved of all future financial and royalty obligations to the ESTATE. When the buyout
is exercised by full payment, CAPITAL shall be obligated to pay the ESTATE all royalties due the ESTATE until the buyout is fully
consummated or if other terms are negotiated and accepted by the ESTATE. Once the Royalty buyout is completed by CAPITAL and should
the Frank Worth Collection be sold to a third party, CAPITAL would then have the right to separately negotiate a royalty agreement
with the third party without factoring in any consideration for the ESTATE.

 

5. Subject nevertheless
to CAPITAL’S continued obligations for payment of the specified Royalties and any other payments under this agreement inclusive
of its liability and compliance with the terms of this agreement, this agreement shall automatically terminate in the event of
CAPITAL’S failure to make timely payments as set forth in this agreement; and/or provide an accurate accounting of its sales
and royalty payment to the ESTATE;

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6. Subject to the terms
and provisions of this agreement and upon the written consent of the ESTATE, provided that CAPTAL shall not be in default of this
agreement, CAPITAL shall have all rights assigned by the ESTATE under this agreement

 

CHOICE OF LAW

 

7. In the unlikely event
that any controversy, claim or dispute shall arise out of, or relate to this agreement, or the breach thereof, we agree that this
shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration
Rules, and any judgment rendered by the arbitrator (s) may be entered in any Court having jurisdiction thereof. Rules and forms
of the American Arbitration Association may be obtained and all claims shall be filed at any office of the American Arbitration
Association;

 

	a.		Service of any process shall be by personal notice and/or by using United States Registered
, certified mail, and/or overnight mail, and shall be effective service of process for any litigation; This agreement shall be
governed by the Laws of the State of California. Each of the parties hereby unconditionally consent to submit to the Jurisdiction
of the America Arbitration Association in the City and County of Los Angeles, California;

 

ADDITIONAL PROVISIONS

 

8. This agreement will
remain in full force and effect in perpetuity unless sooner terminated by agreement of both parties or if one party can demonstrate
cause via a legal action that is adjudicated in their favor. Any notice regarding termination of this agreement, in regard to non
compliance with the stipulations herein, or for any other reason, must be made by certified mail and provide a minimum of twenty
(20) days for a response before any other action can be taken. All costs for any action by CAPITAL or the ESTATE shall be borne
individually.

 

9. This agreement shall
be binding upon the successors and assigns of the parties, their legal representatives, heirs, and permitted assigns, but neither
of the parties hereto shall assign this Agreement without the prior, written consent of the other party.

 

10. This agreement may
be executed in counterparts, each of which shall be deemed to be an original, all of which, taken together shall constitute one
and the same agreement and have the same legal effect;

 

11. This agreement shall
not be modified except in writing signed by all parties.

 

12. Each party acknowledges
that they have read and fully understand the terms and provisions of this agreement; each has had the opportunity to have the same
reviewed by independent counsel;

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13. Any notice required
to be delivered shall be in writing and delivered personally, overnight mail or by certified mail;

 

If there is any question
regarding any of the above, please do not hesitate to communicate with me. Looking forward to a continued and mutually profitable
relationship,

 

Cordially,

 

/s/ Stuart Harris

STUART HARRIS

 

 

Dated; November 18, 2011

 

Agreed and Consented to:

 

	/s/ Stuart Harris	/s/ Sean Goodchild
	ESTATE OF FRANK WORTH	CAPITAL ART, INC.
	BY:  Stuart Harris	BY:   Sean Goodchild, CEO

 

 

 

 

 

 

 

 

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