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Exhibit 4.10    
    

	

TJP/PD	
 	

Sir John Parker FREng

Chairman
	

27 April 2005	
 	

D: +44 (0) 20 7004 3010

F: +44 (0) 20 7004 3012

M: +44 (0) 7831 496201

john.parker@ngtgroup.com

Mr
John Allan

Eagle Lodge

Wellington Avenue

Virginia Water

Surrey

GU25 4QN 

Dear
John, 

        I
am delighted to advise that the Board has confirmed your appointment as a Non-executive Director of National Grid Transco plc (the 'Company') with effect from 1
May 2005. This letter sets out the terms of your appointment and it is agreed that this is a contract for services and not a contract of employment. 

Appointment  

        Your appointment, commencing on 1 May 2005, will be subject to your re-election by shareholders at the Company's AGM on 25 July 2005,
following which the first term of your appointment will run to the Company's AGM in 2008, unless otherwise terminated earlier in accordance with the Company's Articles of Association or by and at the
discretion of either party upon one month's written notice. Continuation of your contract of appointment is contingent on satisfactory performance and re-election by shareholders at
forthcoming AGMs. In the event that shareholders do not support your appointment or other shareholder action terminates your appointment you will not be entitled to receive damages for breach
of contract. As you know, it is Board policy that Non-executive Directors are typically expected to serve two three-year terms; any extension to this is subject to review by
the Nominations Committee (prior to making recommendations to the Board) in the light of good corporate governance policy at the time. 

Time Commitment  

        Overall we anticipate a time commitment of approximately 2-21/2 days on average per month, after the induction phase, taking account
reading and preparation time for Board and Committee meetings. This will include attendance at Board meetings (estimated 9 scheduled meetings per year of which 2-3 will be in the USA) plus
ad hoc and emergency meetings, the AGM, any extraordinary general meetings, 2 Board strategy sessions and at least one site visit each year. It is planned that certain Board meetings will be held at
the Company's operational sites (in the UK and USA). 

        By
confirming this appointment, you have agreed that you are able to allocate sufficient time to meet the expectations of your role including appropriate preparation time. The agreement
of the Chairman should be sought before accepting additional commitments that might affect the time you are able to devote to your role as a Non-executive Director of the Company. 

        You
should also have regard to your duties as a Director in light of the UK Listing Rules and Combined Code and obligations arising as a result of the Company's shares being listed on
the New York Stock Exchange, as set out in the relevant section of the Directors' Information Pack. You will also be subject to the Company's Share Dealing Code, also set out in the Directors'
Information Pack. 

Role  

        All Directors, Non-executive and Executive, have the same general legal responsibilities to the Company. The Board as a whole is collectively
responsible for promoting the success of the Company by directing and supervising the Company's affairs. The Board: 

	•
	provides
effective business leadership of the Company within a framework of prudent and effective controls which enable risk to be assessed and managed;

	•
	sets
the Company's strategic aims, ensures that the necessary financial and human resources are in place for the Company to meet its objectives, and reviews management
performance; and

	•
	sets
the Company's values and standards and ensures that its obligations to its shareholders and others are understood and met. 

        In
addition to these requirements of all Directors, the role of the Non-executive has the following key elements: 

	•
	Strategy: Non-executive Directors should constructively challenge and contribute to the development of strategy;

	•
	Performance: Non-executive Directors should scrutinise the performance of management in meeting agreed goals and
objectives and monitor the reporting of performance;

	•
	Risk: Non-executive Directors should satisfy themselves that the financial function of the Company is
professionally managed and that financial controls and systems of risk management are robust and defensible; and

	•
	People: Non-executive Directors are responsible for determining appropriate levels of remuneration for Executive
Directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning. 

Committees  

        This letter refers to your appointment as a Non-executive Director of the Company. You have also been requested to serve on the Audit and Remuneration
Committees. 

Fees  

        You will be paid an annual retainer fee of £30,000 gross per annum which will be paid monthly in arrears. You will also be entitled to attendance fees
of £1,500 for each Board meeting held in your country of residence and £3,000 for each overseas meeting. 

        In
addition, the attendance fee is intended to cover your attendance at any meetings of Committees of which you are a member. You will not receive any additional fees for membership of,
or attendance at, any ad hoc Board Committee meetings. For the avoidance of doubt home country attendance fees will be payable where you attend a meeting by telephone or video conference or other such
means. 

        The
Company will reimburse you for all reasonable and properly documented expenses you incur in performing the duties of your office. The Board shall review the above fees from time to
time and they are therefore subject to change. All fees and payments will be made subject to any deductions required to be made by the Company. 

        Please
note that the fees paid to Non-executive Directors are currently under review. 

Outside interests  

        It is accepted and acknowledged that you have business interests other than those of the Company and have declared any conflicts that are apparent at present. In
the event that you become aware of 

any
potential conflicts of interest, these should be disclosed to the Chairman and/or Group Company Secretary and General Counsel as soon as apparent. 

Independence  

        The Board have determined you to be independent according to the provisions of the Combined Code. 

        If
you become aware of anything that may affect this determination of independence, this should be disclosed to the Chairman and/or Group Company Secretary and General Counsel as soon as
apparent. 

Confidentiality  

        You will, naturally, during your appointment and following its termination not disclose or communicate to any person (except as required by law or in the course
of the proper performance of your duties, or with the consent of the Board) nor use for your own account or advantage any confidential information relating to the Company or any of its subsidiaries or
associate companies which you obtained during your appointment or otherwise. 

        You
will be required to return all papers containing confidential information on termination of the appointment. 

        Your
attention is also drawn to the requirements under both legislation and regulation as to the disclosure of price sensitive information. Consequently you should avoid making any
statements that might risk a breach of these requirements without prior clearance from the Chairman or Group Company Secretary and General Counsel. 

Induction  

        You have already been provided with an induction to the Company an its businesses and detailed information on a variety of areas plus a Directors' Information
Pack. We have also arranged for various site visits and meetings with senior and middle management and the Company's advisors. We will also arrange for you to meet major investors as appropriate. 

        Should
you feel you require additional information on any area please contact the Group Company Secretary and General Counsel to arrange this. 

Review Process  

        The performance of individual Directors and the whole Board and its Committees is evaluated annually. If, in the interim, there are any matters which cause you
concern about your role you should discuss them with the Chairman as soon as is appropriate. 

Insurance  

        The Company has Directors' and Officers' liability insurance and it is intended to maintain such cover for the full term of your appointment. A summary of the
cover is included in your Directors' Information Pack. 

Indemnity  

        In the event that you are made a party or are threatened to be made a party to any threatened, pending or completed action, suit or processing, whether civil,
criminal, administrative or investigative, by reason of the fact that you are or were a Director of the Company, the Company shall indemnify you against expenses (including legal fees) actually and
reasonably incurred by you in connection with such action, suit or proceeding and against judgements, fines and amounts paid in settlement in connection with such action, suit or proceeding to the
fullest extent permitted by the Companies Act 

1985
as amended and any other applicable law or regulation, as from time to time in effect. Such right of indemnification shall be without prejudice to any other rights which you may be entitled. 

        Please
note, in light of proposed changes to the Companies Act, consideration is being given to changes to the Company's Articles of Association with respect to indemnity along with the
provision of detailed individual indemnities to Directors. 

Independent Professional Advice  

        Occasions may arise when you consider that you need professional advice in the furtherance of your duties as a Director. Circumstances may occur when it will be
appropriate for you to seek advice from independent advisors at the Company's expense. Please advise either the Chairman or the Group Company Secretary and General Counsel should you seek such advice.
The Company will reimburse the full cost of expenditure incurred in respect of such advice. 

Governing Law  

        The agreement contained in this letter shall be governed by, and construed in accordance with, English law and shall be subject to the exclusive jurisdiction of
the English courts. 

Entire Agreement  

        This appointment letter represents the entire understanding, and constitutes the whole agreement, in relation to the Appointment and supersedes any previous
agreement between yourself and the Company with respect thereto. 

        On
a personal level, I am delighted that you have agreed to accept this appointment to the Board of National Grid Transco plc and I look forward to our building a good working
relationship. 

	 	Yours sincerely
	

 	

/s/  JOHN PARKER      

	

 	

Agreed and accepted by:
	

 	

/s/  JOHN ALLAN      
 John Allan

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Exhibit 4.10QuickLinks
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EXHIBIT 10.27    
    

 
 

HOME VIDEO RIGHTS ACQUISITION AGREEMENT    
    
    Dated as of February 24, 2005    
    

        1.    PARTIES:    

        (a)   Twentieth
Century Fox Home Entertainment LLC ("Fox"); and 

        (b)   Out
of the Blue Productions, LLC ("Licensor"). 

        2.    PICTURE:    "Picture" means the motion
picture entitled "CLOUD NINE" (2005) directed by Harry Basil and starring Burt Reynolds, Paul Rodriquez and D.L. Hughley. Picture shall also include all available additional material related to the
Picture (e.g., deleted scenes, interviews, etc.). 

        3.    THEATRICAL RELEASE:    Licensor shall theatrically release the Picture prior to the
Delivery Deadline, or cause the Picture to be theatrically released, in the United States and shall spend no less than $1,000,000 on Print and Advertising Costs for such release prior to the Delivery
Deadline ("Theatrical Release"). Licensor's failure to cause the Picture to be Theatrically Released shall not be a breach of this Agreement but shall
cause the financial structure of the Agreement to change, as set forth in detail below in Paragraphs 10(a) and 10(b). The term "Print and Advertising
Costs" as used in this
Agreement shall mean the aggregate of the following items in connection with the theatrical release of a motion picture: actual media costs and physical materials costs for prints. 

        4.    RIGHTS GRANTED:    Licensor hereby grants and licenses to Fox the sole and exclusive
right and license under copyright and otherwise to exercise all rights of Home Video Distribution and Home Video Exhibition of the Picture in the Distribution Territory, and all additional
non-exclusive rights with respect to exploitation of such Picture and marketing, advertising, and promotion thereof as more fully described in the Standard Terms attached hereto
(collectively, "Distribution Rights"). 

        5.    RESERVED RIGHTS:    Licensor reserves all rights in the Picture not specifically granted
to Fox hereunder ("Reserved Rights"). Licensor has not exercised and will not exercise nor authorize any other Party to exercise any Reserved Rights or
to take any action which would reasonably be deemed to derogate from, impair or compete with the Distribution Rights herein granted to Fox. 

        6.    RIGHT OF FIRST NEGOTIATION AND LAST REFUSAL:    Fox shall have a right of First
Negotiation and Last Refusal with respect to all Motion Pictures created pursuant to Licensor's Sequel Motion Picture Rights, Remake Rights or Additional Motion Picture Rights for the Picture, and any
Literary Material or musical material upon which the Picture is based (the "New Product") as follows: 

        (i)    Fox
shall have the right to receive written notice of Licensor's intent to enter into an agreement for exploitation of any New Product; 

        (ii)   Fox
shall have the right to negotiate exclusively with Licensor regarding such New Product for a period of 30 days prior to any negotiations by Licensor with any
third Parties; and 

        (iii)  Fox
shall have the right to match any final bid or offer from any third Party for exploitation of the New Product, the terms of which bid or offer are in any respect
more favorable to the third Party than the terms presented to Fox or which are materially different from any bid or offer already given to or by Fox (whether or not more favorable); provided that any
such matching offer by Fox (if any), must be transmitted to Licensor within 30 calendar days after Fox receives notice of the competing bid or offer. 

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        7.    DISTRIBUTION TERRITORY:    The "Distribution
Territory" shall consist of the United States and Canada and their territories and possessions. 

        8.    LICENSE PERIOD/SELL-OFF PERIOD:    

        (a)    License Period:    The period during which Fox may exercise the Distribution Rights for the Picture
("License Period") shall commence as of the date hereof, and shall expire 10 years after the Initial Release Date of the Picture.  "Initial Release Date" means the date of initial release by a Home Video Distributor of Cassettes of the Picture for Home Video Exhibition in a
Territory, as determined by Fox or its designee. If the Initial Release Date for a Picture in the United States is not within 1 year after the completion of Delivery of such Picture, for
purposes of the License Period only, the Initial Release Date for such Picture in the Distribution Territory shall be the date that is one year from the completion of Delivery. 

        (b)    Sell-Off Period:    Notwithstanding anything to the contrary in Paragraph 8(a), Fox may
continue to exercise the Distribution Rights under this Agreement on a non-exclusive basis, directly or indirectly, for a period of six (6) months following the end of the License
Period ("Sell-Off Period"), provided Fox ceases to manufacture Cassettes of the Picture upon the end of the License Period. 

        9.    DELIVERY DEADLINE/TELEVISION HOLDBACKS:    

        (a)    Delivery Deadline:    Licensor shall complete Delivery of the Picture to Fox no later than August 1,
2005 ("Delivery Deadline"). If Licensor abandons production or otherwise fails to complete Delivery of the Picture to Fox by the Delivery Deadline, in
addition to any other rights and remedies available to Fox, Licensor shall reimburse Fox immediately upon demand for the full amount of any Advance and any other payments by Fox to Licensor or to any
third Party with respect to this Agreement or any other current or future agreement between Fox and Licensor. 

        (b)    Holdbacks:    Licensor shall not exercise any rights to Television Exhibition in any Territory of the
Distribution Territory until the expiration of the minimum periods of time after the Initial Release Date in such Territory ("Holdbacks"), as set forth
below. 

        (i)    Initial Release Date to On-Demand Exhibition:    On-Demand Exhibition shall not occur
for at least 60 days after the Initial Release Date in the applicable Territory. 

        (ii)    Initial Release Date to Pay Television Exhibition:    Pay Television Exhibition shall not occur for at least
6 months after the Initial Release Date in the applicable Territory. 

        (iii)    Initial Release Date to Free Television Exhibition:    Free Television Exhibition shall not occur for at
least 18 months after the Initial Release Date in the applicable Territory. 

        10.    PAYMENTS TO LICENSOR:    In consideration of the grant of the Distribution Rights and
Licensor's representations and warranties contained herein, and subject to Licensor's compliance with the material terms of this Agreement, Fox shall pay Licensor as follows: 

        (a)    With A Theatrical Release:    If the Picture has a Theatrical Release, the following Advance, Licensor's Share
and Fox Distribution Fee shall apply. 

        (i)    Advance:    Subject to Licensor's compliance with its material obligations under this Agreement, including
without limitation Paragraph 9(a), Fox shall pay to Licensor a non-refundable "Advance" of $550,000 as follows: 

        (A)  $55,000
within 10 days after signature of this Agreement by Licensor; and 

        (B)  $495,000
within 10 days after completion of Delivery. 

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        (ii)    Licensor's Share:    Subject to recoupment of the Advance, as provided in Paragraph 10(a)(iv), Fox
shall remit to Licensor 100% of Net Receipts as "Licensor's Share."

        (iii)    Fox's Distribution Fee:    "Fox's Distribution Fee" shall be
20% of Gross Receipts. 

        (iv)    Recoupment of Advance:    Fox shall be entitled to recoup interest on the Advance, at an annual percentage
rate of 1% above the prime lending rate charged by Bank of America from time to time in effect (the "Fox Financing Charge"), and the Advance from
Licensor's Share. For the avoidance of doubt, Fox shall recoup 100% of the Advance and the Fox Financing Charge out of Licensor's Share and Licensor shall not receive nor be entitled to any portion of
Licensor's Share until Fox recoups such Advance and Fox Financing Charge. 

        (b)    With No Theatrical Release:    If the Picture does not have a Theatrical Release (i.e., goes direct to video
(DTV)), the following DTV Advance, DTV Licensor's Share and DTV Fox's Distribution Fee shall apply. 

        (i)    DTV Advance:    Subject to Licensor's compliance with its material obligations under this Agreement, including
without limitation Paragraph 9(a), Fox shall pay to Licensor, a non-refundable "DTV Advance" of $450,000 as follows: 

        (A)  $45,000
within 10 days after signature of this Agreement by Licensor; and 

        (B)  $405,000
within 10 days after completion of Delivery. 

        (ii)    DTV Licensor's Share:    Subject to recoupment of the DTV Advance, as provided in Paragraph 10(b)(iv),
Fox shall remit to Licensor 50% of Net Receipts as "DTV Licensor's Share."

        (iii)    DTV Fox's Distribution Fee:    "DTV Fox's Distribution Fee"
shall be 20% of Gross Receipts. 

        (iv)    Recoupment of DTV Advance:    Fox shall be entitled to recoup interest on the DTV Advance, at an annual
percentage rate of 1% above the prime lending rate charged by Bank of America from time to time in effect (the "DTV Fox Financing Charge"), and the DTV
Advance from Licensor's Share. For the avoidance of doubt, Fox shall recoup 100% of the DTV Advance and the DTV Fox Financing Charge out of DTV Licensor's Share and Licensor shall not receive nor be
entitled to any portion of DTV Licensor's Share until Fox recoups such DTV Advance and DTV Fox Financing Charge. 

        (c)    Participation Terminology:    

        (i)    "Fox Entity":    Fox, a Subsidiary or an Affiliate. 

        (ii)    "Fox Home Video Distributor":    A Fox Entity which is a Home Video Distributor. 

        (iii)    "Gross Receipts":    100% of the monies actually received and earned by a Fox Home
Video Distributor from the sale and distribution of Cassettes of the Picture in the Distribution Territory, and from third Party Home Video Distributors pursuant to license, after deducting
unspecified customer deductions and discounts, bad debts, returns and costs for which reasonable reserves may be established
pursuant to Paragraph 10(d). No monies shall be included in Gross Receipts with respect to Cassettes of the Picture distributed as free or bonus Cassettes, or for promotional or sales incentive
purposes or in connection with marketing plans ("Promotional Cassettes"), provided that the aggregate number of Promotional Cassettes shall in no event
exceed 7,000 Cassettes. 

        (iv)    "Home Video Distribution Expenses":    All Manufacturing Costs, Sales and Marketing
Costs and Miscellaneous Distribution Costs which are paid, advanced, incurred or accrued by Fox (including its subsidiaries and affiliates) by reason of, in connection with, or which are 

3

 

allocable
to the Home Video Distribution of Cassettes of the Picture, pursuant to the following: 

        (A)  "Manufacturing Costs":    All costs of manufacture, packaging and shipping of Cassettes of the Picture,
including costs of re-editing, dubbing, subtitling, closed captioning and descriptive services, anti-piracy devices and anti-copying protection, mastering,
authoring and compression, raw materials costs including tape, disc, shell, cartridge, box, labels, sleeves, containers, stickers, duplication, replication, packaging materials and services including
plastic-wrapping, "pick, pack and ship" and other physical distribution and handling services, freight, inventory management services including third party expenses in connection with VMI services,
warehousing, insurance, storage, degaussing and disposal and all other costs of degaussing, including charges established pursuant to the then current published rate card for any of the foregoing
products or services provided such charges are generally consistent with prices charged for comparable products or services of unrelated third Parties; 

        (B)  "Sales and Marketing Costs":    All costs in connection with the selling, advertising and promotion of
Cassettes of the Picture, including design, production and manufacture of value added, marketing and advertising materials, press kits, trailers, screening Cassettes, media purchases, mailers,
promotions, fulfillment, advertising funding and rebates including "co-op," sales rebates, display and point-of-purchase advertising, advertising agency and public
relations fees, consultant fees, sales incentive programs, an allocable portion of the dues and assessments paid with respect to industry anti-piracy programs relating to Cassettes,
research, trade show and entertainment costs, commercial tie-ins and sales commissions, including charges established pursuant to the then current published rate card for any of the
foregoing products or services provided such charges are generally consistent with prices charged for comparable products or services of unrelated third Parties; and 

        (C)  "Miscellaneous Distribution Costs":    All amounts (however denominated) remitted by or on behalf of Fox to
taxing authorities as sales, use, excise, VAT, commodity, remittance, withholding and comparable or similar taxes (collectively, "Video-Related Taxes");
and all costs and expenses paid, advanced, incurred or accrued in connection with the Home Video Distribution of Cassettes of the Picture, excluding Manufacturing Costs and Sales and Marketing Costs
but including the conversion of funds costs, collection costs, costs incurred in connection with the protection of copyright, costs incurred with respect to licensing the right to engage in Home Video
Distribution of Cassettes of the Picture, and
costs incurred in connection with claims asserted by third Parties directly relating to Cassettes of the Picture. 

        (v)    "Home Video Distributor":    A Party licensed to perform Home Video Distribution by a
Fox Entity and which engages in the sale or rental of Cassettes embodying Motion Pictures directly to wholesale dealers and/or retail dealers and outlets. The term Home Video Distributor shall not
include a wholesale or retail dealer or outlet which buys or leases Cassettes embodying Motion Pictures from a Party which is also a Home Video Distributor. 

        (vi)    "Net Receipts":    100% of the amount of Gross Receipts remaining, if any, after Fox
deducts, on a continuing and cumulative basis based on financial data determined, recorded and computed as of the end of the particular Statement Period for which a periodic Accounting Statement is
being rendered, the aggregate of the following items (each a "Recoupment Item"), in the following order of priority: Fox's Distribution Fee and Home
Video Distribution Expenses. 

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        (d)    Reasonable Reserves:    

        (i)    Fox
may establish and maintain reasonable reserves for anticipated costs, charges and/or revaluations, including bad debts, returns and defectives, which reserves shall
not exceed 20% of Gross Receipts. 

        (ii)   Any
reserves taken hereunder shall be liquidated periodically, pursuant to Fox's then-current accounting practices and policies but in no event less often
than every 12 months. 

        (e)    Accounting by Fox:    With respect to the Picture released hereunder, Fox shall account to Licensor with
respect to Gross Receipts, Net Receipts and Licensor's Share (or DTV Licensor's Share, as applicable) as follows: 

        (i)    First Accounting Statement and Payment:    Fox shall deliver an initial accounting statement, in a form
determined by Fox, which shows in summary form Gross Receipts, permitted deductions therefrom, and Net Receipts, if any ("Accounting Statement"), and
shall pay Licensor's Share (or DTV Licensor's Share, as applicable) of Net Receipts, if any, no less than 45 days after the end of the calendar quarter in which the Initial Release Date in the
Distribution Territory occurs. 

        (ii)    Subsequent Accounting Statements and Payments:    As to all subsequent Accounting Statements and payments
other than those set forth in Paragraph 10(e)(i) Fox shall deliver an Accounting Statement and pay any balance of Licensor's Share (or DTV Licensor's Share, as applicable) of Net
Receipts, if any, 45 days after the end of each calendar quarter in which Gross Receipts are determined to have been collected. Each such Accounting Statement and payment shall reflect
cumulative adjustments based on cash activity with respect to such Picture subsequent to the issuance of the first Accounting Statement pursuant to Paragraph 10(e)(i). 

        (f)    Cross-Collateralization:    The Picture shall be cross-collateralized among all rights granted hereunder and
among all countries of the Distribution Territory. 

        11.    THIRD-PARTY PARTICIPATIONS/GUILD PAYMENTS:    As between Licensor and Fox, Licensor
shall be solely responsible to account to and/or make any payments to third-Party participants in the proceeds of the Picture derived from the exploitation of the Distribution Rights in the
Distribution Territory. As between Licensor and Fox, Licensor shall be solely responsible for and shall pay all Guild Payments with respect to the Picture. If, notwithstanding the foregoing sentence,
Fox is compelled to pay any Guild Payments pursuant to a collective bargaining agreement or by contractual agreement, Fox shall recoup such Guild Payments from any amounts payable to Licensor and
Licensor shall, upon Fox's request, pay Fox an amount equal to the balance of Guild Payments paid by Fox which have not been so recouped. 

        12.    DISTRIBUTION AND EXPLOITATION:    

        (a)    Fox's Obligations:    

        (i)    Use of Logos:    Fox shall include Licensor's logos on the back of all packaging of Cassettes of the Picture,
in equal prominence to Fox's logo. 

        (ii)    Use of Licensor's Marks:    Fox shall include Licensor's copyright and trademark notices in Cassette packaging
and advertising in accordance with Licensor's written instructions. 

        (iii)    Overhead/Distribution Fees:    Fox shall not deduct any Fox Entity distribution fees as a Home Video
Distribution Expense. Home Video Distribution Expenses shall not include overhead or interest charged by a Home Video Distributor. 

5

 

        (iv)    Marketing Costs:    The Discretionary Marketing Costs for the License Period for the Picture in the United
States shall not exceed 15% of the Modified Home Video Receipts from such License Period without Licensor's prior written consent. "Discretionary Marketing
Costs" are actual costs of point of purchase material, trade advertising, consumer advertising and publicity. "Modified Home Video
Receipts" are 100% of Gross Receipts without deducting any amounts for returns, reserves or bad debts. 

        (v)    Transactions with Subsidiaries and Affiliates:    Fox shall ensure that, with respect to Home Video
Distribution of the Picture, all costs and expenses paid or incurred by a Fox Home Video Distributor for purchases of goods or services from Fox's subsidiaries and affiliates are reasonable and
customary and do not exceed the amount generally paid (or which would be paid) by unrelated third parties for similar goods and services. 

        (b)    Fox's Control:    Except as provided in Paragraph 12(a), Fox shall have complete, exclusive and
unqualified discretion and control as to the time, manner (e.g., whether direct or through intermediaries) and trade terms of Home Video Distribution of the Picture, in accordance with such policies,
terms and conditions and through such Parties as Fox in its sole business judgment may determine proper or expedient. Fox makes no express or implied representation, warranty, guaranty or agreement
that the Picture will be released or distributed, as to the manner or extent of any distribution or other exploitation of the Picture, nor the amount of money to be derived therefrom or expended in
connection therewith, nor the performance by any subsidiary and/or affiliated entity of Fox, or any subdistributor or licensee in connection with the distribution or other exploitation of the Picture. 

        (c)    Assistance to Fox:    In addition to its other obligations under this Agreement, Licensor shall assist Fox in
obtaining (and provide all documentation required to obtain) such licenses and permits as may be necessary or desirable for the importation and distribution of the Picture in the Distribution
Territory. 

        (d)    Video Levies:    Licensor grants and licenses to Fox or its designee a beneficial interest in and the exclusive
right to make all necessary claims and filings and to collect and/or arrange for the collection of all Copyright Revenues. Licensor shall make no separate claim or attempt to collect such Copyright
Revenues. Fox shall allocate collected Copyright Revenues relating to the Picture in a fair and reasonable manner consistent with the data available to Fox. Any collected Copyright Revenues allocated
to Licensor with regard to the Picture shall be included in Gross Receipts. 

        13.    FOX AUDIT RIGHT:    Fox shall have the right to audit Licensor's books and records
relating to the Print and Advertising Costs for the Picture upon 30 days advance notice and during normal business hours at Fox's expense for a period of 18 months following Delivery of
the Picture, and to make appropriate adjustments to the Participation Statements rendered thereafter in accordance with the findings of such audit. 

        14.    NOTICES/DESIGNATION OF AGENT:    

        (a)    To Fox:    All notices from Licensor to Fox shall be given in writing by mail (postage prepaid), messenger or
facsimile (and if sent by facsimile, such notice shall be concurrently sent by 

6

 

mail)
addressed as indicated below. The earlier of: (i) actual receipt; (ii) 3 business days after the date of mailing; or (iii) the date of faxing shall be deemed to be the date
of service. 

	Mail:	 	P.O. Box 900

Beverly Hills, California 90213

Attention: Legal Department	 	 
	

Messenger:	
 	

2121 Avenue of the Stars, Suite 1450

Los Angeles, California 90067

Attention: Legal Department	
 	

 
	

Facsimile:	
 	

(310) 369-4739	
 	

 
	

Telephone	
 	

(310) 369-3022	
 	

 

        (b)    To Licensor:    All notices from Fox to Licensor may be given in writing by mail (postage prepaid) or messenger
or facsimile addressed as indicated below. The earlier of (i) actual receipt; (ii) 3 business days after the date of mailing; or (iii) the date of faxing shall be deemed to be the
date of service. 

	Mail and

Messenger:	 	Cohen & Gardner, LLP

329 N. Wetherly Dr., Suite 206

Beverly Hills, CA 90211

Attention: Jeff Cohen	 	 
	

Facsimile:	
 	

(310) 285-7374	
 	

 
	

Telephone	
 	

(310) 285-7373	
 	

 

        (c)    Service of Process:    Licensor hereby appoints Jeff Cohen, Cohen & Gardner, LLP, 329 N. Wetherly Dr.,
Suite 206, Beverly Hills, CA 90211 to accept service of process in California on its behalf. If no person is validly appointed, or if for any reason said person and/or address may not be validly
served, then Licensor hereby appoints the Secretary of State of California to accept service of process on its behalf. 

        15.    ENTIRE AGREEMENT:    This Home Video Rights Acquisition Agreement ("Main
Agreement"), together with: (a) the Standard Terms and Conditions—Home Video Rights Acquisition Agreement ("Standard
Terms"), attached hereto; (b) Exhibit "A" thereto, the Delivery Requirements, with Schedule "A-1" thereto; (c) Exhibit "B" thereto, the Laboratory
Access Letter; (d) Exhibit "C" thereto, Secured Collateral, Rights and Remedies; and (e) Exhibit "D" thereto, Exclusive License, Assignment and Mortgage of Rights, including Copyright;
embody the entire agreement ("Home Video Rights Acquisition Agreement" or "Agreement") between Fox and
Licensor as to the subject matter hereof, and supersede all previous agreements, warranties or representations, oral or written, which may have been made between Fox and Licensor as to the subject
matter hereof. 

        By
signing in the spaces provided below, Fox and Licensor accept and agree to all of the terms and conditions of this Agreement. 

	Out of the Blue Productions LLC	 	 	 	Twentieth Century Fox Home Entertainment LLC
	("Licensor")	 	 	 	("Fox")
	

 	
 	

 	
 	

 
	

By  /s/ JOHN SIMONELLI	
 	

 	
 	

By  /s/ CORPORATE OFFICER
	       Its CEO	 	 	 	       Its Corporate Officer

7

QuickLinks

EXHIBIT 10.27

HOME VIDEO RIGHTS ACQUISITION AGREEMENT Dated as of February 24, 2005

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